Latest news with #Dealogic
Reuters
29-05-2025
- Business
- Reuters
Mining giant puts new spin on China resource push
HONG KONG, May 27 (Reuters Breakingviews) - Zijin Mining's ( opens new tab, plan to take advantage of the surging gold price may not glitter as much as it hopes. The $67 billion company, which also digs up copper, zinc and lithium, wants to spin off, opens new tab its overseas gold mines into a separate listing on Hong Kong's stock exchange. That could boost its valuation and its global ambition. But new targets may be harder to find. Zijin has gained over 700% since 2015, making it one of the best-performing blue chips in Hong Kong. During that time it also spent $7 billion snapping up assets around the globe, more than its domestic rivals, per Dealogic. Shareholder value was not the only – or possibly even chief – driver. The People's Republic is resource-hungry, and Zijin's overseas spending spree helps Beijing's strategy to secure self-reliance in critical minerals. That's why the mining sector has been unaffected by regulators' tight oversight that has curtailed most other industries' outbound M&A. As a result, Zijin's gold and copper production now accounts for 24% and 65% of China's total, per its latest annual report. The company's strategic value to the country looks even higher with the price of both metals recently shooting to record highs. Arguably, though, keeping them under the same roof has weighed down valuation. Zijin's Hong Kong-listed shares trade at 10 times 2025 earnings, compared with the average 16 times multiple of several gold-mining global peers, calculates Jefferies. Carving out its yellow metal assets might narrow that gap. Yet Chinese miners' global push is getting more rocky. First, Zijin has tended to focus on riskier-looking assets, mainly in developing countries. In 2020, for example, it bought control of the Buriticá project in Colombia from Newmont (NEM.N), opens new tab. It's now the company's third-biggest gold mine by production, but the company reckons thieves in 2023 stole 3.2 tonnes worth $200 million – 38% of the location's annual output. Second, multinational rivals are less willing to sell as Chinese demands drive up prices of critical metals. Many will also want to avoid provoking President Donald Trump, whose administration is stepping up to counterbalance, opens new tab China's influence in resources-rich countries such as the Democratic Republic of Congo, where Zijin is also heavily invested. All big mining companies have to learn how to navigate geopolitical risks. For Zijin, those lessons are getting trickier.
Yahoo
22-05-2025
- Business
- Yahoo
Goldman Sachs combines three Asia IB businesses, names Drayton new unit head
By Selena Li HONG KONG (Reuters) -Goldman Sachs is merging three Asian investment banking businesses it previously managed separately into a single unit to integrate its regional deals advisory and capital market capabilities, according to a memo reviewed by Reuters. Iain Drayton, head of the Wall Street bank's investment banking business in Asia excluding Japan, will lead the integrated Asia Pacific investment banking unit, said the internal memo issued on Thursday. A bank spokesperson confirmed the memo's content. "This structure will enable more holistic client engagement, more effective deployment of global and regional expertise, and increased career opportunities for our people," Goldman Sachs said in the memo. In the new role, Drayton will work closely with Yoshihiko Yano and Shogo Matsuzawa, co-heads of investment banking in Japan, and Nick Sims and Zac Fletcher, co-heads of corporate advisory in Australia and New Zealand, the memo said. A Goldman Sachs veteran, Drayton joined the firm in Tokyo as a managing director in 2006, relocated to Hong Kong in 2010, and was named a partner in 2014. Goldman Sachs ranks at the top of the Asia Pacific equity capital market league table this year, according to Dealogic data.
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Business Standard
20-05-2025
- Business
- Business Standard
How the trade war shaped Chinese battery giant's Hong Kong debut
It is the world's biggest maker of batteries for electric cars. It is expanding its business globally. And it is one of China's most strategically important technology companies. But when Contemporary Amperex Technology Ltd, or CATL, started selling shares for the first time in Hong Kong on Tuesday, surging 16 per cent, American investors were largely shut out. It was the world's biggest stock listing so far this year, according to the data provider Dealogic. Tensions between China and the United States (US) pushed CATL to shut US onshore investors out of its share sale, the first outside of the Chinese mainland, where it is listed in the city of Shenzhen. That some of the world's most active investors were absent from one of the most anticipated trading debuts so far this year underscored the deepening rift between the US and China. CATL has found itself caught in the crossfire as Washington and Beijing have lobbed sanctions, blacklists and tariffs at each other. It was labeled a Chinese military company by the Pentagon. US lawmakers called on its Wall Street bankers to back out of the Hong Kong listing. And it has been hit with tariffs. The exclusion of American investors in Hong Kong's splashiest stock sale of the year marks a dramatic reversal from a decade ago when Alibaba, the Chinese e-commerce giant, elicited cheers from traders as it went public on the New York Stock Exchange in 2014. The company raised $21.8 billion, delivering a big payday for Wall Street banks and minting mom-and-pop investors. 'We are headed toward full financial decoupling with China,' said Stephen Roach, an economist and a former chairman of Morgan Stanley Asia based in Hong Kong. 'Congress is driving the process of disengagement,' he said. The shares of Chinese companies that are traded in the US could be the next thing to come under fire, he added. The US government has targeted Chinese companies as it moves to limit China from accessing American markets out of national security concerns, a policy that Trump began in his first term and which President Joseph R. Biden Jr continued. CATL, based in the southern China city of Ningde, supplies electric car batteries for General Motors, Tesla and more than a dozen global carmakers. Its technological advances have made lighter and cheaper batteries that can charge faster. The company said that it will use the funds raised in Hong Kong to help with its expansion in Europe, where it is building a new factory in Hungary to supply batteries to European automakers like BMW, Volkswagen, and Stellantis. Among its biggest investors are Kuwait's sovereign wealth fund and the American firm Oaktree Capital Management. Another major investor is Hillhouse Capital Management Group, which was founded by the Chinese investor Zhang Lei. CATL moved to hive off American investors ahead of the listing as tensions between the US and China spiked. It said last week that it had changed the share sale to what is known as a Reg S offering, which prevents the sale of stock to onshore US investors and exempts it from having to make certain regulatory filings in the US. The company did not explain why it changed the structure of its listing, but it has cited geopolitical tension as one of the risks to its business. 'We face risks associated with changes in trade policies or tariff regulations,' CATL said.
Yahoo
20-05-2025
- Automotive
- Yahoo
Tesla EV Battery Supplier CATL's Stock Soars After Largest Listing in 2025
Shares of Contemporary Amperex Technology Co., or CATL, soared more than 16% in their Hong Kong trading debut Tuesday after the Chinese electric vehicle battery maker raised more than $4.5 billion in the world's largest listing this year. CATL's listing is the world's largest this year, according to Dealogic data, exceeding the $1.75 billion raised by LNG exporter Venture Global or the $1.57 billion by Nvidia-backed CoreWeave. The Chinese firm is a supplier of EV batteries to companies like of Contemporary Amperex Technology Co., or CATL, soared more than 16% in their Hong Kong trading debut Tuesday after the Chinese electric vehicle battery maker raised more than $4.5 billion in the world's largest listing this year. The listing comes as Chinese companies are grappling with the effects of the Trump administration's imposition of tariffs, despite recent rollbacks. CATL, the world's largest EV battery maker, benefited from investors' faith in the EV boom, and raised 35.51 billion Hong Kong dollars ($4.54 billion) from its secondary listing. (The company is already listed on the Shenzhen Stock Exchange in mainland China.) CATL's listing is the world's largest this year, according to Dealogic data, exceeding the $1.75 billion raised by liquefied natural gas (LNG) exporter Venture Global (VG) from its January initial public offering or the $1.57 billion by Nvidia-backed (NVDA) AI cloud provider CoreWeave (CRWV). The second-biggest IPO this year was the $3 billion IPO in March by Japan's JX Advanced Metals, according to the data provider. The company, which is a supplier of EV batteries to companies like Tesla (TSLA), had sold 135 million shares at 263 Hong Kong dollars ($33.60) each ahead of its secondary listing. Shares closed Tuesday at HK$306.20. In its prospectus, CATL said that at the end of last year, its "EV batteries were installed in over 17 million vehicles, which represents one in every three EVs worldwide." It said the bulk of the IPO proceeds would go toward funding its plant in Hungary. UPDATE—May 20, 2025: This article has been updated to include data from Dealogic to show it's this year's largest listing. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Nikkei Asia
18-05-2025
- Business
- Nikkei Asia
No 'Trump bump' for global M&A as tariffs leave buyers leery
NEW YORK -- Uncertainty fueled by U.S. tariffs has contributed to a drop in global mergers and acquisitions to a 20-year low, dashing earlier hopes of a deregulation-driven "Trump bump." A total of 2,482 M&A deals were announced in March according to Dealogic -- the lowest monthly tally since May 2005, and a bigger slump than those that followed past shocks such as the 2008 financial crisis and the COVID-19 pandemic. Activity ticked up slightly in April, with 2,513 deals, but this was still well below last year's monthly average of 3,457.
