Bocom in talks with some S-chips to tap HK market

Question

Business Times - 16 Sep 2009Bocom in talks with some S-chips to tap HK marketCompany says it is close to gaining some mandatesBOCOM 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.Copyright &copy; 2007 Singapore Press Holdings Ltd. All rights reserved.

诸婵 · Answer

More S-chips go on charm offensiveBusiness Times - 16 Sep 2009S-CHIPS IN FOCUSMore S-chips go on charm offensiveRoadshows, investor conferences feature in drive to draw institutional interestBy LYNETTE KHOOMORE S-chips are going on a charm offensive to revive interest among institutional investors. And their choice of weapons are roadshows, meetings and investor conferences.Among them is Midas Holdings, which is having a roadshow in New York this week organised by Kim Eng Securities and Sinotel Technologies, which is conducting its first-ever publicity roadshow to meet US investment professionals this month.'We believe that attracting institutional investors and funds can help to meet the company's objective of attracting longer term investors,' said Ben Ng, Sinotel's investor relations vice-president, who was in San Deigo. The roadshow started in New York on Sept 8 and will end tomorrow in Los Angeles.In New York last week, Sinotel management also attended the Rodman and Renshaw conference to meet investment professionals from around the world.In Singapore, Yangzijiang Shipbuilding, China Animal Healthcare and China Zaino are attending Financial PR Investor Conference today to meet international fund houses from Hong Kong, Taiwan, China and the US.Interest in S-chips has crept back, compared to a few months ago when the market rally was fuelled by blue chips. Many funds keep their stakes below 5 per cent, which does not require mandatory disclosure of stakeholding, or hold the shares under nominees.'The recent privatisations and dual listings have brought back some attention to S-chips. It's better than before but of course, nothing compares to the heydays,' said Chan Tuck Sing, executive director of UOB-KayHian.He was referring to the string of announcements by China Precision and Sihuan Pharmaceutical to delist as well as dual listing plans proposed by China XLX and Z-Obee.But the closing of smaller hedge funds here since the Lehman collapse has affected the institutional shareholder base for S-chips, Mr Chan said. Historically, smaller hedge funds were key institutional investors in S-chips.Some small-cap funds with the mandate to invest in smaller companies have also closed, noted Wong Sui Jau, general manager of Fundsupermart.While it is early days to gauge the impact of these publicity efforts by S-chips, new capital has been raised in some cases.At Yangzijiang, which has put on its publicity armour since late last year, institutional investors account for over 35 per cent of its free float. The investors include JPMorgan, HSBC Trinkaus, UBS Global Asset Management, RBC Global Investment, State Street Global Advisors, Vanguard and Blackrock Investment.'We can conclude that the institutional interest in the company's stock is relatively high,' a Yangzijiang spokesman said.Sinotel has also recently added US-based Barron Partners LP to its shareholders list. Its application for an American Depository Receipts (ADRs) facility in the US has been approved and effected on Monday and it is now in the process of appointing a market maker.As a sign of rising institutional interest, many individual investors were turned away at Sinotel's share placement earlier this month because of overwhelming orders from funds, Mr Ng said.Last&Atilde;&Acirc;  month, Pan Hong Property Group raised a net $11.8 million through a share placement to Bocom International Holdings, which took a 4.64 per cent stake. Bocom is the investment banking and broking subsidiary of Bank of Communications, one of the top five banks in China.Bocom deputy chief executive Liu Qiang said this decision was underpinned by confidence in the sector, the group's management and financial track record. Pan Hong has also been a long-time customer of BOC in Zhejiang and Jiangxi in China as well as in Hong Kong.'At a suitable time, we will increase our investments (in Singapore),' Mr Liu told BT. 'Besides S-chips, we also look at Singapore firms, particularly the banks, the offshore marine and property companies.'Market players believe that interest in S-chips will remain selective, with the spotlight falling on bigger S-chips and those with more exciting business stories to tell.'After the big scare where S-chips or their major shareholders have problems, obviously the reception towards them is one of caution,' Mr Chan of UOB-KayHian said.On the other side of the coin, 'those left behind now and have survived the last round of cleansing are supposedly more credible,' he added.Copyright &copy; 2007 Singapore Press Holdings Ltd. All rights reserved.

诸婵 · Answer

文章重点：Yangzijiang Shipbuilding, China Animal Healthcare and China ZainoYangzijiang Shipbuilding, China Animal Healthcare and China Zaino are attending Financial PR Investor Conference today.

Bocom in talks with some S-chips to tap HK market

2 个回答

相似问题