Home appliance maker Midea is set to raise about $4bn in a secondary listing in Hong Kong, but the market’s biggest debut in more than three years does not yet signal a broader revival in public offerings, according to analysts. The amount raised by the manufacturer of fridges and air conditioning units will provide a much-needed boost to some dire numbers, with Hong Kong and Chinese mainland markets mired in one of their worst years for listings in the past decade.
data. One person familiar with the process cautioned that an “A to H” listing, in which a mainland China-listed company launched a secondary listing in Hong Kong, did not necessarily herald a reopening of the IPO pipeline, although it was a positive step. said at the end of June that it had 107 active IPO applications. “It’s unknown whether Hong Kong could absorb that much paper,” the person added, referring to market liquidity. “It also shows that global investors are not out of China.” Tim Wang, partner and chair of law firm Clifford Chance’s China practice, said they were seeing “strong interest in companies from mainland China to list in Hong Kong”.