September 17, 2014 Leave a comment
September 17, 2014 20 Comments
By Mak Ho Yin
Earlier this year, Citic Group had injected essentially all its assets to its wholly owned unit, Citic Pacific. Afterwards the latter had proposed to acquire Citic Limited, a main operating unit from the Group at HKD36.4 million. Citic Pacific is a Hong Kong listed company, and since Citic Limited remains a division of Citic Pacific after the acquisition, it would de facto become listed in Hong Kong under the name of Citic Pacific. This process is generally called ‘back door listing’. Being the first SOE to use this strategy to go public in Hong Kong, the deal was described as the pioneer of future SOEs’ reformation and aroused much concerns about the potential legal issues behind the transaction.
September 17, 2014 16 Comments
By To Tsz Hei, Henry
The new Hong Kong Companies Ordinance has come into effect on 3 March this year. The key goals of the new Ordinance are to enhance corporate governance and ensure better regulation by modernizing the law to reduce ambiguity, complexity, as well as duplication with other regulatory frameworks, for example HKFRSs issued by the HKICPA.
September 17, 2014 19 Comments
By Wan Lai Wa
Hong Kong Airlines applied for listing approval from Hong Kong Stock Exchange and raising US$500 million initial public offering in two currencies, HKD and RMB, which is the first dual-currency IPO in Hong Kong. It aims to expand further into China and enhance its competitiveness in the market. (Ho, 2014) According to the new Company Ordinance (Cap 135), all local companies, including Hong Kong Airlines have to implement ‘no-par’ system for share capital.
September 17, 2014 27 Comments
By Fong Hoi Yan
Citic is now being sued by the Securities and Futures Commission (SFC) for providing misleading information to investors over losses in 2008 and about 4500 investors lost over HK$1.9 billion due to this (Yiu, 2014).
In September that year, the company issued a circular saying that there was not “any adverse material change in the financial or trading position of the group” (Yiu, 2014). A month later, Citic announced that it had suffered great losses of around HK$15.5 billion from the forex contracts. The commission alleges that the company was conscious of the potential risks brought by the forex investment before issuing the circular (Yiu, 2014).
April 23, 2014
April 23, 2014 10 Comments
By Zhu Haipeng Harry
After the failure of IPO in the Hong Kong market, Alibaba is planning to reschedule the IPO plan in the U.S market. This time the China’s biggest e-commerce company still plans to use its Hong Kong standard, which is 1.1 percent of the total IPO proceeds as base fee together with another one third of comes in the form of incentive bonuses, as the underwriters’ fee. According to the estimated valuation of $20 billion Alibaba could raise in the sale, the pool fee can be potentially more than $220 million.