Hong Kong’s IPO market excites global funds, bankers as jumbo deals return, CICC says

Name: Boom or bust: how sustainable is China’s stock frenzy?
Uploaded: 2025-01-15T07:00:42.000Z
Duration: 6 min 57 s
Description: Boom or bust: how sustainable is China’s stock frenzy?

Foshan Haitian Flavouring, CATL are among mainland industry leaders planning billion-dollar IPOs as China deepens market connectivity

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A man walks past a CICC signboard in Guomao, Beijing. Photo: Getty Images

Aileen Chuang

Published: 3:00pm, 15 Jan 2025Updated: 4:51pm, 15 Jan 2025

More jumbo stock offerings from some of China’s biggest onshore-listed companies are making their way to Hong Kong, supported by demand from global funds, improved valuations and market reforms, according to the nation’s biggest investment bank.

“Some leading A-share companies with a large market capitalisation in various industries [are looking] to issue H shares, which could attract some international long-term funds and institutional investors,” said Xu Jia, deputy head of the investment banking department at China International Capital Corporation (CICC).

Investors from Europe, Asia-Pacific and mainland China had been encouraged by a rebound in market sentiment over the past quarter, with many new initial public offerings (IPOs) trading higher on their debuts, the bank said at a briefing on Tuesday.

China’s biggest condiment maker Foshan Haitian Flavouring and Food submitted an application on Monday to list its shares. It has selected CICC, Goldman Sachs and Morgan Stanley as joint sponsors, with media reports suggesting the Shanghai-listed firm was looking to raise at least US$1.5 billion.

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Boom or bust: how sustainable is China’s stock frenzy?

Contemporary Amperex Technology, or CATL as the world’s largest producer of batteries for electric vehicles is known, could raise US$5 billion in one of Hong Kong’s largest IPOs in recent years, according to media reports. The Shenzhen-listed firm announced its plan last month, pending approvals from shareholders and regulators.