HK Exchange To Trade 1st Yuan Shares To List Outside China's Mainland
Source: Agencies |
April 11, 2011, Monday
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Print Edition
Print Edition
THE world's first yuan-denominated shares to list on a stock exchange outside the Chinese mainland will start trading in Hong Kong on April 29, managers said yesterday, as firms seek to tap surging investor interest in China's appreciating currency.
An initial public offering for Hui Xian Real Estate Investment Trust begins today and may raise up to 11.16 billion yuan (US$1.7 billion), the trust's managers said.
Hui Xian's sole asset is Oriental Plaza, a complex in Beijing controlled by billionaire Li Ka-shing, Hong Kong's richest man. Two billion units in the trust, or about 40 percent, will be sold to investors. The issue price will be 5.24 yuan to 5.58 yuan, giving the trust a market capitalization of 26.2 billion to 27.9 billion yuan.
The remaining 60 percent of the trust will be owned by a group of companies, including Cheung Kong (Holdings) Ltd and Hutchison Whampoa Ltd, both controlled by Li, and Bank of China Ltd.
Oriental Plaza consists of a shopping mall, office and apartment towers and the Grand Hyatt Beijing hotel.
The long-awaited IPO is the latest step in the growing use of China's currency overseas and investors will be keenly watching the results.
Hong Kong is promoted as a platform for yuan-based international banking.
Hong Kong banks started handling yuan in 2004. The amount of yuan in Hong Kong's banking system has skyrocketed over the past year, reaching 407.7 billion yuan in February, four times larger than in July 2010. Savers and investors believe the yuan will continue to gradually strengthen against the Hong Kong dollar and other currencies.
An initial public offering for Hui Xian Real Estate Investment Trust begins today and may raise up to 11.16 billion yuan (US$1.7 billion), the trust's managers said.
Hui Xian's sole asset is Oriental Plaza, a complex in Beijing controlled by billionaire Li Ka-shing, Hong Kong's richest man. Two billion units in the trust, or about 40 percent, will be sold to investors. The issue price will be 5.24 yuan to 5.58 yuan, giving the trust a market capitalization of 26.2 billion to 27.9 billion yuan.
The remaining 60 percent of the trust will be owned by a group of companies, including Cheung Kong (Holdings) Ltd and Hutchison Whampoa Ltd, both controlled by Li, and Bank of China Ltd.
Oriental Plaza consists of a shopping mall, office and apartment towers and the Grand Hyatt Beijing hotel.
The long-awaited IPO is the latest step in the growing use of China's currency overseas and investors will be keenly watching the results.
Hong Kong is promoted as a platform for yuan-based international banking.
Hong Kong banks started handling yuan in 2004. The amount of yuan in Hong Kong's banking system has skyrocketed over the past year, reaching 407.7 billion yuan in February, four times larger than in July 2010. Savers and investors believe the yuan will continue to gradually strengthen against the Hong Kong dollar and other currencies.
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