Corporate insights: February 2013
Last year saw a lacklustre IPO market in Hong Kong. Listings of equity securities dropped from a peak of 106 new listings in 2010 to 50 new listings on the Main Board in 2012. Along with the decline in the number of listings, there was a noticeable increase in the number of cornerstone investments.
Cornerstone investors are investors who agree to buy a pre-agreed amount of the international placing shares on offer in an IPO. They are also known as “strategic investors”. While initially in Hong Kong, cornerstone investors were commonly the city’s tycoons, nowadays, the profile of cornerstone investors has evolved to include investment funds, state-owned corporations and other companies within the same industry. For example, in the listing of Zhengzhou Coal Mining Machinery Group Company Limited , the cornerstone investors included a subsidiary of China Huadian Corporation, a PRC state-controlled entity, which is the controlling shareholder of Huadian Fuxin Energy Corporation Limited (which listed in Hong Kong in June), while another cornerstone investor in that listing was a company in the same industry (namely, a wholly-owned subsidiary of Inner Mongolia Yitai Group Co. Ltd., which is also the controlling shareholder of Inner Mongolia Yitai Coal Co., Ltd. which listed in Hong Kong in July)…
If you are registered and logged in to the site, click on the link below to read the rest of the Hogan Lovells briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Hogan Lovells
News from The Lawyer
Briefings from Hogan Lovells
The decision of the US Court of Appeals has raised questions about how issuers should present their disclosures on conflict minerals under Exchange Act Rule 13p-1 and Form SD.
An interesting judgment was delivered by the Honourable J Majiki on 19 November 2013 in the Eastern Cape High Court, Port Elizabeth.
Analysis from The Lawyer
As international firms question their future in these small, closely linked markets, local lawyers too are eyeing the business environment with caution
Beyond the headline infrastructure projects, UK construction work is still recovering from the clobbering it took during the slump