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Thursday, 17 September 2009
Bocom in talks with some S-chips to tap Hong Kong market
BOCOM International Holdings, which recently made its first investment in a Singapore-listed Chinese company, is now in talks with a few other S-chips to tap the Hong Kong market.
Bocom in talks with some S-chips to tap Hong Kong market
Company says it is close to gaining some mandates
16 September 2009
BOCOM International Holdings, which recently made its first investment in a Singapore-listed Chinese company, is now in talks with a few other S-chips to tap the Hong Kong market.
This could take the form of dual listing for S-chip companies or a public offering for those that have delisted from Singapore Exchange, Bocom chief executive Simon Hua told BT yesterday.
Mr. Hua will be in Singapore today to participate in the Financial PR Investor Conference.
‘There are good-quality companies listed in Singapore, but these companies are not fairly valued and some have low trading volumes, so we think we could provide an alternative financial platform for these S-chips,’ he said.
This window has been flung much wider now that Hong Kong has, since July, allowed Singapore-listed companies seeking a dual listing there to keep their existing Singaporean auditors and to stick with Singapore Financial Reporting Standards in subsequent financial reports.
Mr. Hua said this could be the ‘beginning of a trend’ that allows Singapore-listed companies more opportunities to tap another equities market.
Bocom is one of the largest investment banks and securities brokers in Hong Kong with China origin. It is talking to three to five S-chips and is close to gaining some mandates, according to Mr. Hua.
Some S-chips here lack institutional interest, resulting in lower liquidity and trading volumes, Mr. Hua said. It is difficult for these companies to do refinancing through follow-on issuances post-listing.
Hong Kong, on the other hand, has some advantages in hosting Chinese companies, given its larger pool of China-related listed companies and the presence of China-focused funds that have set up offices there.
In the retail space, Hong Kong investors are also more familiar with the China story. Chinese residents making overseas investments tend to make Hong Kong their first stop, he added.
Besides promoting the Hong Kong market, Bocom is also looking at direct investment opportunities in S-chips, having injected $11.9 million into Pan Hong Property Group in a private share placement for a 4.64 per cent stake last month.
Bocom is not perturbed by the string of accounting scandals surrounding S-chips. Some S-chips here have strong relationships with its parent firm Bank of Communications through its provincial branches in China.
‘This is one of the advantages we have over other independent securities firms in China. That will actually help us screen out good opportunities,’ Mr. Hua said. Bocom also intends to develop more investment banking businesses with these S-chips.
He added that Bocom’s strategy is in line with global investment appetite. The firm is keen on growth companies in the mid-cap category, with good strategies and management.
It is also interested in those that will benefit from continued growth of the Chinese market. These sectors include consumer manufacturing, infrastructure and materials.
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Bocom in talks with some S-chips to tap Hong Kong market
Company says it is close to gaining some mandates
16 September 2009
BOCOM International Holdings, which recently made its first investment in a Singapore-listed Chinese company, is now in talks with a few other S-chips to tap the Hong Kong market.
This could take the form of dual listing for S-chip companies or a public offering for those that have delisted from Singapore Exchange, Bocom chief executive Simon Hua told BT yesterday.
Mr. Hua will be in Singapore today to participate in the Financial PR Investor Conference.
‘There are good-quality companies listed in Singapore, but these companies are not fairly valued and some have low trading volumes, so we think we could provide an alternative financial platform for these S-chips,’ he said.
This window has been flung much wider now that Hong Kong has, since July, allowed Singapore-listed companies seeking a dual listing there to keep their existing Singaporean auditors and to stick with Singapore Financial Reporting Standards in subsequent financial reports.
Mr. Hua said this could be the ‘beginning of a trend’ that allows Singapore-listed companies more opportunities to tap another equities market.
Bocom is one of the largest investment banks and securities brokers in Hong Kong with China origin. It is talking to three to five S-chips and is close to gaining some mandates, according to Mr. Hua.
Some S-chips here lack institutional interest, resulting in lower liquidity and trading volumes, Mr. Hua said. It is difficult for these companies to do refinancing through follow-on issuances post-listing.
Hong Kong, on the other hand, has some advantages in hosting Chinese companies, given its larger pool of China-related listed companies and the presence of China-focused funds that have set up offices there.
In the retail space, Hong Kong investors are also more familiar with the China story. Chinese residents making overseas investments tend to make Hong Kong their first stop, he added.
Besides promoting the Hong Kong market, Bocom is also looking at direct investment opportunities in S-chips, having injected $11.9 million into Pan Hong Property Group in a private share placement for a 4.64 per cent stake last month.
Bocom is not perturbed by the string of accounting scandals surrounding S-chips. Some S-chips here have strong relationships with its parent firm Bank of Communications through its provincial branches in China.
‘This is one of the advantages we have over other independent securities firms in China. That will actually help us screen out good opportunities,’ Mr. Hua said. Bocom also intends to develop more investment banking businesses with these S-chips.
He added that Bocom’s strategy is in line with global investment appetite. The firm is keen on growth companies in the mid-cap category, with good strategies and management.
It is also interested in those that will benefit from continued growth of the Chinese market. These sectors include consumer manufacturing, infrastructure and materials.
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