China might allow foreign companies to sell stock in Shanghai next year, opening the world’s largest market for first-time share sales and advancing the city’s bid to become an international financial center. \n“The preparation work is proceeding quite nicely,” Fang Xinghai (方星海), director general of Shanghai’s financial services office, said in a Bloomberg TV interview. \nAsked when overseas companies will be allowed to list on the city’s stock exchange, Fang said, “sometime next year, I hope.” \nHSBC Holdings PLC and London Stock Exchange Group PLC are among companies that have expressed interest in a Shanghai listing when China opens the world’s largest market for stock sales to foreign firms. Companies may raise about 500 billion yuan (US$74 billion) in initial public offerings in Shanghai and Shenzhen this year, more than in any other country, PricewaterhouseCoopers (PWC) said on Monday. \n“Having a foreign board creates a deeper and broader capital market,” said Peter Alexander, Shanghai-based principal at Z-Ben Advisors. “It’s one of many steps toward achieving the stated goal of making Shanghai a global financial center.” \nThe China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange “are taking the lead” in preparing rules governing stock offerings by overseas companies in the city, Fang said. \nIn April, the China Daily said Shanghai may start the board this year, citing Xu Quan (徐權), deputy director of the city’s financial service office. \nShanghai has been contacted by foreign companies from the finance, consumer goods, telecommunications and manufacturing industries about selling shares in the city, Fang said in May. The city is introducing investment products to tap the nation’s corporate and household savings. \nTwo overseas companies and one red-chip firm — a company controlled by Chinese owners and listed abroad — could debut on Shanghai’s international board as early as the second half of this year, Frank Lyn, PWC’s China markets leader, said on Monday, without identifying the firms. \nA stock market slump that left Shanghai shares trading at a discount to equities in Hong Kong has made offerings in China less appealing to foreign companies, said Jonathan Masse, a fund manager at Walnut Creek, California-based AlphaShares Inc. \nCompanies with “a great deal of business in China are likely to be less inclined to IPO on the mainland, as any capital raised would likely be at an international discount,” he said. \nYuan-denominated A shares, which are restricted almost exclusively to local investors, fell below Chinese stocks traded in Hong Kong last month for the first time in almost four years, according to the Hang Seng China AH Premium Index. \nCSRC Vice Chairman Yao Gang (姚剛) said last month that legal and jurisdictional issues need to be resolved before the international board can be started. \nLondon-based HSBC, Europe’s largest bank by market value, is waiting for rules governing Shanghai listings by foreign companies to be completed, chief executive officer Michael Geoghegan said last month in Shanghai. The lender aims to raise a “significant amount” on the city’s stock market, he said. \nLondon Stock Exchange aims to list in Shanghai by the end of next year, CEO Xavier Rolet said last month. Coca-Cola Co, General Electric Co and Wal-Mart Stores Inc are among US companies that might seek listings in China, UBS AG strategist John Tang wrote in a report in July last year.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to