Latest news with #SelenaLi
Mint
7 days ago
- Business
- Mint
Hong Kong allowing listing applicants more privacy sparks wave of confidential filings
By Julie Zhu, Selena Li and Kane Wu HONG KONG (Reuters) -At least two dozen Chinese companies have confidentially filed for listing in Hong Kong this year and more are preparing to do so, two industry sources said, following a new rule permitting private filings at a time of heightened market volatility. The Hong Kong exchange's rule for U.S.-style confidential filings, which allows certain companies to keep their business plans and financials under wraps in the initial stages of their stock market debut process, was implemented in May. Chinese companies, including autonomous driving firm Zelos Tech and artificial intelligence (AI) startup MiniMax, have filed confidentially in recent months to get themselves listed in the city, according to separate sources. Most filings followed the launch of the Technology Enterprises Channel (TECH) in May, allowing certain niche biotech and technology firms, including AI companies, to apply privately. Confidential filings appeal to sectors such as AI and semiconductors that are deemed sensitive due to heightened macroeconomic and geopolitical risks, advisers say. The mechanism allows firms to navigate the regulatory review process without public disclosure, offering flexibility when IPO timelines are uncertain, according to several senior bankers at global and Chinese investment banks. Previously, without getting exemptions from the Hong Kong exchange, only firms already listed on another major overseas bourse could lodge draft prospectuses confidentially ahead of launching a share sale in the Asian financial hub. The new filing mechanism is set to bolster Hong Kong as a preferred fundraising venue mainly for Chinese companies amid fierce competition with other major listing venues, notably New York, where confidential filings have been allowed for years. A record number of Chinese companies are seeking a U.S. listing this year, braving volatile Sino-U.S. relations and U.S. calls for strict oversight of Chinese firms, Reuters reported last week. Still, Hong Kong has been propelled by the influx of Chinese companies to the global top spot by listing volume of initial and second listings so far this year, overtaking its biggest rival, New York Stock Exchange, according to data from LSEG. The listing momentum is set to continue with more than 190 listing applications - approximately 45% in technology and 20% in healthcare, according to the exchange operator Hong Kong Exchanges and Clearing Ltd (HKEX). U.S.-listed robotaxi companies Pony AI and WeRide have also submitted confidential filings for their second listings in Hong Kong earlier this year, two sources with knowledge of the matter said. The sources declined to be named as they were not authorised to speak to the media. MiniMax, Pony AI and WeRide declined to comment. Zelos did not respond to Reuters' request for comment. HKEX declined to comment for this story or on the total number of confidential applications. Other companies not covered under the newly-launched TECH initiative can request a waiver from the Hong Kong exchange to keep their listing applications private, according to capital markets bankers and lawyers. Fast-fashion retailer Shein, for example, lodged its filing for a Hong Kong IPO confidentially last month, in the most high-profile such case so far, according to two separate sources with direct knowledge of the matter. Shein did not respond to a request for comment. Confidential filings are advantageous in the innovation-driven economy. Biotech companies are particularly cautious about releasing information on their projects and research and development plans due to intense competition in the sector, according to Jean Thio, a Clifford Chance capital markets partner. "These companies have valuable IP that's being developed and they're trying to monetise that," Thio said. "If you were to put all that information out at such an early stage, there are worries that you could be leaking confidential trade secrets which your competitors could use against you." A typical IPO process in Hong Kong generally takes at least six months from filing preliminary documents to launching the book, bankers and lawyers said. "The market just shifts overnight with geopolitical or just tariff news. No one wants to be in the headline of an IPO flop after they file," said a Chinese company executive who held discussions about filing confidentially for a Hong Kong IPO. (Reporting by Julie Zhu, Selena Li and Kane Wu in Hong Kong; Writing by Scott Murdoch; Editing by Sumeet Chatterjee and Jacqueline Wong)
Yahoo
05-08-2025
- Business
- Yahoo
Analysis-Chinese firms set for record US listings, undeterred by geopolitics
By Samuel Shen and Selena Li SHANGHAI/HONG KONG (Reuters) -A record number of Chinese companies are seeking a U.S. listing this year as onerous domestic listing rules and the prospect of better valuations convince them to brave volatile Sino-U.S. relations and U.S. calls for strict oversight of Chinese firms. In the first half of 2025, 36 mostly small and mid-sized Chinese companies went public in the U.S., following a record-breaking year of 64 in 2024, said law firm K&L Gates. Many of those firms went public through special purpose acquisition companies (SPACs) - listed companies set up to buy mainly startups, making the startups public without them having to go through the lengthy initial public offering process. Waiting to list on the Nasdaq are more than 40 Chinese companies, including a mobile advertising service provider and a traditional Chinese medicine maker, Chinese disclosure showed. That number, which excludes confidentially filed listing applications, will take the annual tally of Chinese firms going public in the U.S. to a new high if all materialise this year. "I think it's a healthy year for Chinese IPOs. It will probably be a record year or near that," said David Bartz, partner at K&L Gates, who has built a "robust" pipeline of Chinese clients seeking first-time share sales in the U.S. Chinese firms have had a harder time going public at home since the government tightened listing rules in 2023, raising the appeal of listing via SPACs in the U.S., as well as that country's deeper pool of capital. Pursuing a U.S. listing amounts to a bet that calls from U.S. lawmakers aimed at diminishing Chinese access to the world's largest capital market can only go so far, bankers and lawyers said. One listing hopeful is racing car manufacturer Xinghui Car Technology, whose head raised a toast at a Shanghai hotel in June to celebrate a major step toward going public in the U.S. "The U.S. capital market is one of the world's biggest. It's liquid and allows easy access to funding," said Xinghui Chairman Song Wenfang upon signing a preliminary agreement to be acquired by Nasdaq-listed SPAC UY Scuti. Since Xinghui's celebrations, investors have pushed U.S. share prices to record highs, expecting trade deals to be the beginning of the end of uncertainty wrought by months of U.S. President Donald Trump threatening to impose steep tariffs. The China Securities Regulatory Commission, which oversees Chinese firms' offshore sales of securities, did not respond to a request for comment. SPAC SURGE Over 100 Chinese firms, including technology leaders Alibaba, and Baidu, are U.S.-listed, boasting a combined market value of about $1 trillion as of March, showed data from the U.S.-China Economic and Security Review Commission. In April, tearoom chain Chagee debuted on the Nasdaq after raising $411 million in the biggest IPO of a Chinese firm in the U.S. this year. Of those seeking to list, a growing number are pre-profit or even pre-revenue startups, mainly in the tech sector, aiming for a quicker means of raising capital through a SPAC listing, said Karen Mu, managing director at Alliance Global Partners. That demand has contributed to the total number of firms listing in the U.S. via SPACs almost doubling last year to 57 and climbing to 76 so far this year, showed SPACInsider data. The increased Chinese interest, however, has caught the attention of U.S. lawmakers who called for the delisting of Chinese firms from U.S. exchanges as recently as May citing national security concerns. In June, the U.S. Securities and Exchange Commission (SEC) singled out China as it sought to raise disclosure requirements for listing hopefuls. A spokesperson for SEC declined to comment on the Chinese listing trend beyond saying the regulator gathers information on the number of all foreign companies listed on U.S. exchanges. Spokespersons for the New York Stock Exchange and Nasdaq declined to comment. DOMESTIC HURDLES The rush of Chinese listing hopefuls heading West is being fuelled by high regulatory thresholds for listing at home as well as criteria skewed to spur growth of sectors in line with national interests. In China, a company needs to exceed a certain size or be profitable to qualify for a main-board listing. Alternatively, to list on tech boards, firms need to align with government self-sufficiency goals or achieve set levels of productivity. "In the U.S., as long as you can meet objective rules set by regulators, you can go public," said Steve Markscheid, managing partner of Aerion Capital, who also serves as independent director of several U.S.-listed Chinese companies. "Things are more subjective in China. The regulator needs to analyse whether the company is good or not. Only companies judged as good can go public." It takes nine to 12 months on average for an IPO candidate in China to secure regulatory approval, compared to six to nine months in Hong Kong and four to six months in New York, showed an analysis from Merits & Tree Law Offices. The lengthy approval process and high listing thresholds means that for startups, "listing in China becomes mission impossible," said Xinghui deal adviser Ronald Shuang of Shanghai-based investment company Balloch Holding. 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Yahoo
31-07-2025
- Business
- Yahoo
StanChart sets $1.3 billion buyback after H1 profit beats handily
By Selena Li and Lawrence White HONG KONG/LONDON (Reuters) -Standard Chartered (StanChart) reported on Thursday its first-half pretax profit rose 26%, beating analysts' estimates, as a strong performance in the wealth, markets and global banking businesses boosted revenue at the lender. StanChart, which earns most of its revenue in Asia and Africa, said the reported pretax profit for the first six months of this year reached $4.38 billion. That compared with $3.49 billion a year earlier and the $3.83 billion average of 15 analyst estimates compiled by the bank. The London-headquartered lender also announced a further $1.3 billion share buyback that it said would start imminently. Despite the strong performance, StanChart kept its key performance targets largely unchanged, saying the global economy could suffer from the broader fallout of U.S. President Donald Trump's trade wars. The emerging markets-focused bank slightly raised its guidance for income this year, saying it now expected growth to be at the bottom of a 5%-7% range rather than below it. The lender also appeared to dodge the multi-billion dollar China-related write-downs which blighted rival HSBC's results on Wednesday, with StanChart reporting an impairment charge for the first half of $336 million, mainly from its wealth and retail banking unit. Sign in to access your portfolio
Yahoo
31-07-2025
- Business
- Yahoo
StanChart sets $1.3 billion buyback after H1 profit beats handily
By Selena Li and Lawrence White HONG KONG/LONDON (Reuters) -Standard Chartered (StanChart) reported on Thursday its first-half pretax profit rose 26%, beating analysts' estimates, as a strong performance in the wealth, markets and global banking businesses boosted revenue at the lender. StanChart, which earns most of its revenue in Asia and Africa, said the reported pretax profit for the first six months of this year reached $4.38 billion. That compared with $3.49 billion a year earlier and the $3.83 billion average of 15 analyst estimates compiled by the bank. The London-headquartered lender also announced a further $1.3 billion share buyback that it said would start imminently. Despite the strong performance, StanChart kept its key performance targets largely unchanged, saying the global economy could suffer from the broader fallout of U.S. President Donald Trump's trade wars. The emerging markets-focused bank slightly raised its guidance for income this year, saying it now expected growth to be at the bottom of a 5%-7% range rather than below it. The lender also appeared to dodge the multi-billion dollar China-related write-downs which blighted rival HSBC's results on Wednesday, with StanChart reporting an impairment charge for the first half of $336 million, mainly from its wealth and retail banking unit. 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
Yahoo
11-07-2025
- Automotive
- Yahoo
Nissan Motor raises $4.5 billion in bond sales, term sheet shows
By Selena Li HONG KONG (Reuters) -Japan's Nissan Motor has raised $4.52 billion in U.S. dollar- and euro-denominated senior unsecured bonds, according to a term sheet reviewed by Reuters on Friday, with the proceeds intended to refinance existing debt. The issuance comes about a week after Reuters reported that Nissan has asked some suppliers to allow it to delay payments to free up short-term funds, highlighting its scramble to boost cash. According to the term sheet, $3 billion was raised through three U.S. dollar tranches with 5-, 7-, and 10-year maturities, while a further 1.3 billion euros ($1.52 billion) were issued in four- and eight-year tranches. The U.S. dollar 5-year bonds were priced at 355 basis points (bps) over Treasuries, the 7-year at 360 bps, and the 10-year at 376 bps. The coupons are 7.5% for the five-year tranche, 7.75% for the seven-year tranche and 8.125% for the 10-year tranche, the term sheet showed. Citi, Bank of America and HSBC were joint book runners for the bond sales, according to the term sheet. The automaker faces around 700 billion yen ($4.76 billion) in debt maturing this financial year and has been downgraded to "junk" status by all three major credit-rating agencies. ($1 = 0.8563 euros) ($1 = 146.9400 yen)
