China pushes SOEs on offshore renminbi listings

23 Mar 2012

With only one deal last year and none so far this year, the offshore renminbi IPO market has been virtually non-existent. But that could soon change. The first mainland Chinese company will list on the Hong Kong Stock Exchange by the end of the year, and the government is pushing state-owned companies to consider the market for capital raising.

The only issuer so far to list in Hong Kong using the offshore renminbi was Hui Xian Real Estate Investment Trust, which closed its transaction in April last year. The size of the deal was impressive — the company raised Rmb10.48bn ($1.6bn) — but some bankers were surprised ...

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