China capital curbs take toll on Hong Kong IPOs

By John Loh
10 Mar 2016

China’s city bank IPOs are in the limelight again as a pair of regional lenders prepare to launch Hong Kong listings worth billions of dollars. But with China stepping up capital curbs to keep outflows in check and foreign investors still wary of Chinese equities, these deals will be in an even tighter spot than usual. John Loh reports.

China Zheshang Bank started pre-deal investor education this week for a float that could raise $1.5bn-$1.6bn. Bank of Tianjin is also looking to start pre-marketing as soon as possible, with its IPO potentially raising some $1bn, say bankers working on these transactions.

The trades will be the ...

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