Shares tumble on IPO concerns

    CHINA’S shares fell yesterday as investors are concerned new share issues may flood the market and dilute the value of their stock holdings.

    Sentiment was also affected by a moderation of China’s services purchasing managers’ index confirming growth continues to slow. The benchmark Shanghai Composite Index ended down 1.80 percent at 2,045.71. The Shenzhen Composite Index fell 2.57 percent to 1,038.34.

    Tech niches open to foreign investors

    CHINA yesterday laid out plans to open some technology and telecom sub-sectors to foreign investment in the Shanghai free trade zone.

    Launched in September, the zone was billed as a venue for experiments in cutting red tape and encouraging foreign investment and financial innovation, but full details of how it will work have yet to be released. China will open information services and data storage services to foreign investment in the free trade zone, according to a notice posted on the website of the Ministry of Industry and Information Technology. Foreign ownership cannot exceed 50 percent. The ministry did not say when the new rules become effective.

    Chexim plans to issue dim sum bonds

    EXPORT & Import Bank of China (Chexim) plans to issue up to 4 billion yuan (US$660.99 million) in dim sum bonds in Hong Kong to institutional investors, kicking off a strong offshore yuan bond pipeline expected this year.

    The bonds will comprise a two-year tranche and a three-year tranche worth of 1 billion yuan, respectively, which may be upsized to 4 billion yuan depending on demand, the bank said yesterday. A quota of 300 million yuan for the three-year tenor is reserved for foreign central banks, sovereign institutions and monetary authorities, the bank added.

    Harbin Bank plans US$1b HK IPO

    HARBIN Bank is planning to apply for a US$1 billion initial public offering (IPO) in Hong Kong this month, paving the way for a listing as soon as the second quarter this year, people familiar with the matter said yesterday.

    The bank had been planning a listing in both Hong Kong and Shanghai, but the bank decided to list only in Hong Kong since the mainland closed off IPOs from October 2012 until last month.