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South China Morning Post
11-06-2025
- Business
- South China Morning Post
China may let Hong Kong-listed firms raise funds in Shenzhen via ‘H + A' IPOs
New Chinese government guidelines allowing Hong Kong-listed companies to seek secondary share listings in Shenzhen could help these companies expand on the mainland while potentially encouraging more Hong Kong share offerings, according to analysts. Unveiled on Tuesday by the Central Committee of the Communist Party and the State Council, the guidelines allow mainland companies with Hong Kong-listed shares (known as H shares), to issue A shares, or yuan-denominated shares, on the Shenzhen Stock Exchange – a reversal of the so-called A + H pathway that mainland-listed companies can use to add dual listings on the Hong Kong exchange The guidelines did not elaborate on which companies would be eligible for H + A listings or the required procedures. The new opportunity would diversify fundraising options for businesses within the Greater Bay Area , the economic region including Hong Kong, Macau and nine cities in Guangdong province, said Wilson Chan Fung-cheung, adjunct professor at City University. It would 'allow businesses within the [bay area] to raise new funds to expand their operations in mainland China, where their brands are more widely recognised', he said. The dual-listing scenario could also tempt more businesses to seek listings in Hong Kong, as a single application could allow them to offer shares in both markets, said Kenny Ng Lai-yin, a strategist at Everbright Securities International in Hong Kong. The new regime could exclude some listed companies, including Tencent Holdings , that use a structure that disallows mainland listings. Many Chinese companies listed in the US and Hong Kong use the set-up, known as the variable interest entity structure, to circumvent Chinese restrictions that prohibit foreign investors from holding assets in certain sectors such as the internet and telecommunications.
Yahoo
08-05-2025
- Business
- Yahoo
Sterling, FTSE Rise on Trade-Deal Hopes Ahead of BOE
(Bloomberg) -- The pound and FTSE 100 stock-index futures rallied on a report that US President Donald Trump is expected to announce a trade pact between the US and UK later Thursday. Most Read from Bloomberg Trump teased the announcement of a 'major trade deal' in a social media post on Wednesday night, with subsequent reports indicating the country involved was the UK. Sterling gained as much as 0.5% to 1.3356 after the news before paring its advance. The report 'is a modest positive' for the pound, said Moh Siong Sim, FX strategist at Bank of Singapore. Dollar weakness has been the dominant theme in the currency market since Trump's April 2 tariff onslaught, amid concerns that the US may face economic recession and elevated price pressures. A Bloomberg gauge of the greenback has dropped about 4% in that time. Stocks have also felt the pressure; the benchmark FTSE 100 index has fallen 0.6% since then, while the Hang Seng China Enterprises Index is down more than 3%, and the S&P 500 is off 0.7%. FTSE futures also rallied on the trade-pact news, gaining as much as 0.9% amid hopes the agreement will alleviate US tariffs on the UK. 'Trump's proposed UK trade deal could provide a short-term boost to UK exporters' in areas like financials, autos and energy, said Kimmy Tong, global market and FX strategist at Everbright Securities International. She is positive on the FTSE 100, seeing the current valuation of 12.6 as 'undemanding' compared with 15.5 in 2018, during Trump's first trade war. Details around this deal might give an indication of what future deals with other countries might look like, said Mahjabeen Zaman, head of FX research at ANZ Banking Group Ltd. Market attention will now turn to the Bank of England's interest rate decision, which is due later Thursday ahead of Trump's press conference. 'For sterling, the BOE outcome is equally important,' said Zaman. The central bank is widely expected to cut interest rates by 25 basis points, and traders will be looking out for signals as to whether another rate cut may come as soon as next month, particularly given the hopes for the US-UK trade deal. 'We will be watching for monetary policy commentary on inflation and the future rate path to gauge whether risks are skewed toward a quicker easing cycle,' said Bank of Singapore's Sim. (Corrects day of week in first and second paragraphs.)
South China Morning Post
22-04-2025
- Business
- South China Morning Post
China adds nearly 2 million private firms in first quarter as calls for support rise
The number of newly established private companies in China grew by 7.1 per cent in the first quarter from a year earlier, in what is being seen as a sign of resilience as the private sector bears the brunt of the fallout from the US-China trade war. Advertisement Nearly 1.98 million private firms were registered in the first three months of the year – a growth pace higher than the average in the past three years, China's top market regulator announced on Monday. This reflects the 'strong resilience' of China's private economy, the State Administration for Market Regulation said, though it did not disclose numbers on closures and bankruptcy. In total, there were more than 57 million registered private enterprises nationwide as of the end of March, accounting for 92.3 per cent of all enterprises, according to the administration. China's private businesses are expected to be hit hard by the up-to 245 per cent tariffs that the US says it has imposed on China, as those firms contribute to more than half of the country's exports. Advertisement They reported an export and import value of 5.85 trillion yuan (US$803 billion) in the first quarter, up 5.8 per cent, year on year, Chinese customs data showed. They also accounted for 56.8 per cent of the total trade value in the period – an increase of 2.4 percentage points from a year earlier. 'Compared with state-owned enterprises, private and small businesses are more vulnerable to US 'reciprocal tariffs',' Zhang Xu, an analyst with Everbright Securities, wrote in a note in early April.
