Xiaomi Corp-backed electric scooter maker Ninebot has set the issue price for its Rmb2.08bn ($309m) IPO on Shanghai’s Star market, the first offering of depository receipts in China.
Markets may have shrugged off MSCI’s decision not to include A-shares in its latest review but it proved to be more of a shock to some of the major investment banks which had forecast inclusion as the most likely outcome.
MSCI has once again highlighted the inability for foreign investors to move money freely in and out of China as a reason for leaving A-shares out of its Emerging Market Index. While the world’s second largest economy has moved quickly to reform other parts of its financial sector, market participants are divided about whether China will budge on capital controls.
Index provider MSCI has surprised markets by once again delaying the inclusion of A-shares in its Emerging Markets index. While some progress has been made, China still has more work to do to tackle concerns around repatriation and restrictions on launching financial products linked to onshore exchanges, the firm said on June 14.
MSCI’s decision to not include China A-shares into its Emerging Market index drew little reaction with both the currency and the major stock indices holding up well during Wednesday trading.
While opinions range on how appropriate it will be for MSCI to go ahead with the inclusion of A-shares into its global benchmarks, the index provider has been giving greater space to US-listed Chinese stocks. But despite the decision on A-shares being just over a week away, market participants are still weighing the pros and cons.
MSCI completed its latest review of its Emerging Market indices in June 2016 and for a third time refused to include China A-shares.
The index provider said that while some progress has been made, institutional investors still had plenty of concerns about restrictions on taking money out of the country and the approval process for A-share linked financial products.
Any decision will now be part of the 2017 review. However MSCI did leave open the possibility of an “off-cycle announcement” if Chinese regulators address its concerns.
Click below to access MSCI documents on its justification for the delay in 2016 and its 2015 review.
Xiaomi Corp-backed electric scooter maker Ninebot has set the issue price for its Rmb2.08bn ($309m) IPO on Shanghai’s Star market, the first offering of depository receipts in China.
Sheng Ye Capital, a Hong Kong-listed financial services provider, has made its debut in the syndicated loan market. It is raising funds in offshore renminbi.
Geely Automobile Holdings is one step closer to becoming the first Chinese automaker to debut in the Star market, having received stock exchange approval for a secondary listing in Shanghai.
Ant Group is one step closer to launching its blockbuster dual listing in the Mainland and Hong Kong, after the Shanghai bourse gave its blessing to the Star market leg of the IPO.
Ant Group has tackled more than two dozen questions posed by the Shanghai Stock Exchange ahead of its concurrent jumbo IPOs on the Star market and Hong Kong. The digital payment firm’s ownership structure, especially its ties to Alibaba Group Holding, as well as its business model and use of the listing proceeds were under scrutiny.
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GC Asia
