Latest news with #WuQing
Yahoo
28-05-2025
- Business
- Yahoo
Here's what's behind China's IPO crackdown
Shein appears to be abandoning its hopes for a flotation in London. The fast-fashion retailer is reportedly preparing to list on the Hong Kong stock exchange as its application to launch an initial public offering on the London Stock Exchange stalls with Chinese regulators, Reuters reported Wednesday. While Shein is headquartered in Singapore, it was founded in China, where the majority of its suppliers remain. Sources told Reuters that the company aims to file a draft prospectus with Hong Kong's stock exchange in the coming weeks. The delay reflects a broader shift in how Chinese regulators are vetting listings. A total of 428 IPO applications were withdrawn in China in 2024, according to Yicai Global, marking a 75% increase compared to the previous year. Chinese companies raised approximately $25.2 billion through IPOs last year, according to data across various markets. That marks a 43% decline from the year before. Notable Rejections included bubble tea companies Mixue Bingcheng, Guming Holdings and Auntea Jenny, all of which had hoped to list in Hong Kong. The trend began when Wu Qing was appointed chief of the China Securities Regulatory Commission (CSRC) in February of last year. In his previous regulatory roles, Qing was dubbed the 'broker butcher,' for leading a crackdown on securities firms. He kicked off his tenure by launching a campaign to boost the quality of listed companies and revive China's struggling stock market. 'Every step of the IPO vetting and registration process should be put under the microscope,' he said, and vowed to 'keep fraudsters away from capital markets.' A series of high-profile scandals and underperforming IPOs over the past decade have knocked investor confidence and highlighted regulatory oversight. In 2021, China had a record-breaking number of IPOs. However, of the 39 that launched in the U.S., just 32 are still trading, according to data from the U.S.-China Economic and Security Review Commission. Today, shares in each of those companies trade for less than their launch value, with most down at least 90%, according to Quartz's analysis. Perhaps the most notable: Didi. The ride-hailing app listed in the U.S. despite concerns among China's regulators. Shortly after the launch, an investigation found the company broke cybersecurity and data privacy laws. Chinese authorities fined the firm $1.2 billion, and it was delisted from the New York Stock Exchange (ICE). New measures under Qing include higher profitability thresholds for listing on main boards and the Growth Enterprise Market. Quotas for onsite inspections have risen from 5% to 20% of applicants. Plus, there's been a tightening of rules relating to revenue sources and business sustainability. As part of the enhanced scrutiny, officials have reportedly shown up at an IPO applicant's office, sources told Asia Financial. Personal bank data was scanned and business transactions probed, sources said. For the latest news, Facebook, Twitter and Instagram. 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
South China Morning Post
16-05-2025
- Business
- South China Morning Post
CATL's dilemma: top-of-the-range Hong Kong IPO price may take fizz out of trading debut
The pricing of Contemporary Amperex Technology's (CATL) Hong Kong shares at the top end of the range bodes well for China's leading companies eyeing a listing in the city, but the richly valued offer price may hurt the new stock's first-day performance due to its smaller-than-average discount to the company's mainland-traded shares. The Ningde, Fujian province-based maker of lithium-ion batteries that power electric vehicles (EV) is expected to raise HK$35.66 billion (US$4.6 billion) from the sale of 135.6 million shares at HK$263 apiece, the Post reported on Wednesday, making it the world's largest listing this year. CATL will reveal the final offer price on Monday night and start trading the following day. Shenzhen-listed CATL , which is capitalised at 1.2 trillion yuan (US$166.4 billion), is the ninth-biggest company trading on the mainland and one of the few big names that have yet to go public in Hong Kong. Wu Qing, chairman of the China Securities Regulatory Commission, reaffirmed the support for high-quality Chinese companies to list in the city last week, showcasing Beijing's resolve to solidify Hong Kong's position as a top global financial centre amid an all-out confrontation with the US. The Hong Kong stock exchange also said that it would fast-track approvals for dual listings. Mixue Group's mascot Snow King strikes a gong during the company's listing ceremony at the Hong Kong stock exchange on March 3. Photo: Reuters CATL's listing 'is actually one of the major measures to support Hong Kong's equity market, and one of the ways to help Chinese leading companies to capture more international funds', said Jason Chan, an equity strategist at Bank of East Asia in Hong Kong. CATL's offer price is 6.7 per cent below the close of 260.18 yuan for its Shenzhen-listed shares on Thursday. That compares with the average 25 per cent discount for the Hong Kong-traded shares of the 158 dual-listed Chinese companies, such as ICBC and Ping An Insurance Group.
South China Morning Post
08-05-2025
- Business
- South China Morning Post
CATL to open floodgates for China-listed firms seeking share sales in Hong Kong
Mainland China-listed firms are flocking to Hong Kong for new share offerings, driven by attractive valuations, strong liquidity and supportive policies, with Contemporary Amperex Technology 's (CATL) deal poised to be the biggest of the year. Advertisement Shenzhen-listed CATL, the world's largest producer of batteries for electric vehicles, is gauging investor interest for its estimated US$5 billion share float this week after receiving approval from the Hong Kong stock exchange's listing committee on Tuesday. The share sale would be the city's largest since Kuaishou Technology raised US$6.2 billion from its initial public offering (IPO) in January 2021 CATL is among the 30 A-share companies that have submitted applications for H-share offerings in Hong Kong so far this year, surpassing last year's total of 16, according to the latest data available from the Hong Kong stock exchange and industry research. Such applications averaged five a year from 2016 to 2023, according to a CGS International note in March. A total of 46 A-share companies planned to list in Hong Kong this year, state media outlet Securities Daily reported on Tuesday. Wu Qing, chairman of the China Securities Regulatory Commission, said the overseas listing process would be further simplified, which would strengthen Hong Kong's status as an international financial centre. Photo: SCIO On Wednesday, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), said the market regulator would streamline the filing mechanism, process and related elements for overseas listings to further improve the quality and efficiency, strengthening Hong Kong's status as an international financial centre. Advertisement The regulatory support is expected to further fuel the A-to-H listing trend, adding to the CSRC's measures unveiled in April 2024 to support IPOs of leading Chinese companies in Hong Kong, and the Hong Kong bourse operator's announcement in October that it would expedite share sales by mainland-traded Chinese companies.
Forbes
07-05-2025
- Business
- Forbes
China Market Update: PBOC Cuts Rates & Consumption Stimulus Raised
CLN KraneShares The State Council Information Office held a 9 am press conference featuring the People's Bank of China's (PBOC) Central Bank Governor Pan Gongsheng, the Financial Supervision Bureau (FSB) Director Li Yunze, and China Securities Regulatory Commission (CSRC) Chairman Wu Qing. Q1 Chinese economic data was 'relatively good' though the 'global economy is full of uncertainties, economic fragmentation, and increased trade tensions, disrupting the world's industrial supply chain'. Due to the effect of 'weakening global growth momentum,' blamed on the US' tariff policy, the PBOC announced the following measures would be taken following instruction from the CPC Central Committee's April 25th economic and monetary policy meeting: Bank's reserve requirement ratio (RRR), the amount of bank deposits kept in reserve and not lent out, will be reduced to 9.0% from 9.5%, which will add CNY 1 trillion to the market. The deposit reserve ratio of auto finance and financial leasing companies will be reduced to 0% from 5%. This should be a strong catalyst for automakers, though Hong Kong-listed stocks had a mixed performance. The 7-day reverse repo interest rate has been reduced to 1.4% from 1.5%, which will lower the LPR by 0.1%. 'The interest rate of structural monetary policy instruments was reduced by 0.25%,' including agricultural and small business loans, 1.5%, and the PBOC loan rate to commercial banks (PSL) to 2%. The personal housing fund loan was reduced by 0.25% to 2.6% for a 5-year loan. It's a bit surprising real estate stocks didn't have a better day. Loans supporting scientific and technological innovation increased to CNY 800 billion from CNY 500 billion to 'support large-scale equipment replacement and consumer goods exchange.' CNY 500 billion will be lent to commercial banks to 'service consumption and pension refinancing.' The objective is to 'encourage and guide financial institutions to increase financial support for key areas of service consumption such as accommodation, catering, culture, sports and entertainment, education, and the elderly care industry, and cooperate with fiscal and other industry policies to better meet the needs of the masses for consumption upgrading.' I highlighted this section as all the commentary/media is focused on interest rates, though no one mentions this consumption stimulus. I highlighted this section as the commentary/media is focused on interest rates, though no one mentions this consumption stimulus. Loans to agricultural and small businesses will be increased by CNY 300 billion. CNY 300 billion will be lent to support stock share repurchases, and CNY 500 billion to 'securities fund insurance companies.' Support local governments to minimize the default loss risk of bonds. The CSRC's Wu Qing spoke to the 'Nine National Policies,' which include encouraging corporate governance reforms, including buybacks and dividends. The CSRC also supports stock market purchases from sovereign wealth fund Central Huijin, national social security fund, securities and fund institutions, banking and insurance institutions. He noted that 90% of Chinese Mainland-listed companies' revenues are generated in China. FSB's Li Yunze focused on measures to support the real estate and stock markets. He stated that the 'white list', real estate projects deemed too big to fail, have received CNY 6.7 trillion of loans. Insurance companies are being encouraged to increase their equity allocations. Interestingly, the speakers explicitly blamed the US and US tariff policies for the turbulence in the global economy. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will meet with Vice Premier He Lifeng this weekend in Switzerland. Progress can be made by focusing on easy wins, such as fentanyl and reducing tariffs from both sides, as we've seen already in critical goods. The Ministry of Commerce (MoC) press conference noted that, "Based on the full consideration of global expectations, Chinese interests, and appeals from American industry and consumers, China has agreed to engage with the US. Vice Premier He Lifeng, as the Chinese leader of China-US economic and trade, will talk with the US leader, US Treasury Secretary Bessent, during his visit to Switzerland.' Asian equities had a positive day despite a stronger US dollar, led by Thailand, while Pakistan underperformed following India's airstrikes. Interestingly, Indian equities overcame morning losses to post small gains, hopefully indicating the situation doesn't escalate amongst the nuclear-armed countries. Interestingly, defense and military stocks were top performers in both Mainland China and Hong Kong. Both markets opened higher following the financial press conference and US-China trade talks, though faded over the course of the trading day. The Hang Seng, Hang Seng Tech, Shanghai, and Shenzhen indexes have hit resistance levels, as they rebound to pre-Liberation Day levels. Financials were a strong performer in both markets as beneficiaries of the lower interest rate, as old school value plays outperformed growth in both markets. Mainland China had a much better day compared to Hong Kong due to the higher growth exposure, as Hong Kong's growth stocks appeared to be hit with profit taking. gained +2.29%, a rare growth outperformer following the strong May Day holiday travel data. Mainland investors sold -$1.038 billion of Hong Kong (net buying year-to-date is $78.585 billion). President Xi's visit to Moscow might weigh on foreign investors' sentiment, though it is hard to say. Potentially, today's press conference didn't meet expectations, though the fact that it was called at all should be taken as a positive. The Chinese government is very focused on stimulating its economy, supporting the real estate and stock markets. All good things in my opinion. New Content Read our latest article: New Drivers For China Healthcare: AI Med-Tech Innovation, Cancer Treatment, & Favorable Balance of Trade Please click here to read Chart1 KraneShares Chart2 KraneShares Chart3 KraneShares Chart4 KraneShares Chart5 KraneShares Chart6 KraneShares CNY per USD 7.22 versus 7.21 yesterday CNY per EUR 8.21 versus 8.16 yesterday Yield on 10-Year Government Bond 1.64% versus 1.63% yesterday Yield on 10-Year China Development Bank Bond 1.67% versus 1.66% yesterday Copper Price +0.46% Steel Price +0.45%
Yahoo
07-05-2025
- Business
- Yahoo
China Cuts Key Rate, Reserve Ratio to Aid Economy Hit by Tariffs
(Bloomberg) -- Most Read from Bloomberg China reduced its policy rate and lowered the amount of cash lenders must keep in reserve, as Beijing ramps up efforts to help an economy caught in a second trade war with the US. The People's Bank of China cut the seven-day reverse repurchase rate to 1.4% from 1.5%, according to Governor Pan Gongsheng. The central bank will also trim the reserve requirement ratio by half a percentage point, Pan said at a briefing on Wednesday. Pan's announcement came hours after China revealed it would hold its first trade talks this weekend with US officials since Donald Trump unleashed a 145% tariff on most Chinese goods. The governor spoke alongside China Securities Regulatory Commission Chairman Wu Qing and the head of the National Financial Regulatory Administration, Li Yunze. 'The US abuses of tariffs have severely disrupted global economic and trade orders,' said the CSRC's Wu. 'The production and operation of listed companies have inevitably been affected directly or indirectly.' The latest steps aim to guide borrowing costs lower and are among the 10 measures outlined by Pan, which also include rate reductions on a slew of relending tools and and loans for policy banks. The RRR cut will release about 1 trillion yuan ($139 billion) in long-term liquidity, Pan said. The seven-day reverse repo cut will go into force on Thursday, with the RRR reduction in effect a week later, the PBOC said in separate statements. As markets digested the news of the looming trade talks and China's announcements, the offshore yuan erased gains to trade 0.1% weaker, while the 10-year government yield edged one basis point higher. Stocks also pared an early advance, with the Hang Seng China Enterprises Index up just 0.3% at the mid-day break after rising more than 2% earlier. The CSI 300 Index, a benchmark for onshore shares, was up just 0.5%. 'The market is now turning to see the progress in trade talks,' said Jason Chan, a senior investment strategist at Bank of East Asia. 'Investors may be more cautious that both sides may not be able to make a deal in the near term and that's why Chinese policymakers need to roll out so many easing measures prior to the meeting.' The decisions demonstrate policymakers are acting with urgency to support the world's second-largest economy in the face of the US-China trade war. Expectations that Beijing would deploy more stimulus have risen after Trump brought US tariffs to a level economists say would decimate bilateral trade.
