China Renaissance eyes HK, US dual listings for tech firms

May 20, 2015 09:07
Gloria Lu (left) and Fan Bao (right) look forward to more US-listed firms seeking a dual listing in Hong Kong or the mainland. Photo: EJ Insight

China Renaissance Securities, a Beijing-based investment bank serving the financing needs of Chinese technology firms, expects rising demand for its services.

Many US-listed internet firms may consider a dual listing in Hong Kong or on China's New Third Board, it said.

"When Alibaba went public in the United States last year, all the liquidity in the world had a chance to subscribe to its shares, while mainland Chinese investors could not enjoy the opportunity unless they got an overseas trading account," Gloria Lu, managing director and head of equities at China Renaissance, said in a Hong Kong media briefing on Tuesday.

If US-listed tech companies can be dual-listed in Hong Kong, mainland retail investors will be able to buy these stocks through Shanghai-Hong Kong Stock Connect, Lu said.

"The transaction volumes of shares of and Alibaba have been so far so good in the US, but they will grow much bigger if the shares can be traded in the Hong Kong or even the A-share markets," she said. 

Fan Bao, chairman and chief executive of China Renaissance Group, which is the parent of China Renaissance Securities, said the company has formed a partnership with CITIC Securities Co. Ltd. (06030.HK, 600030.CN), which has the A-share underwriting license and distribution network to help US-listed Chinese firms go public in China. 

At the same time, CITIC Securities can also leverage China Renaissance's expertise in the technology, media and telecommunication (TMT) sector, he said.

Since its debut in 2004, China Renaissance has successfully completed 250 initial public offerings, mergers and acquisitions, convertible bond offerings and private placement transactions, amounting to almost US$26 billion. 

The bank's clients include, Didi Dache, Qihoo 360 Technology and Youku Inc. 

On Tuesday, the bank announced an expansion of its equities business to facilitate trades for institutional clients in Hong Kong. It has recently relocated its office to the International Commerce Center in Austin Road.

The full setting up of China Renaissance's equities business in Hong Kong will offer investors the opportunity to be part of China's growth story and will provide many Chinese TMT firms with alternative sources of capital from outside China, Lu said. 

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EJ Insight writer