Tag Archives: Guotai Junan

IPOs: BOC Aviation Set for Take-Off, P2P Lender Lufax Delays

Bottom line: BOC Aviation’s stock will debut with a 5-10 percent gain when trading starts on Wednesday, while Lufax’s delay of its IPO plan looks prudent until China’s P2P lending sector settles down.

BOC Aviation set for strong debut

After running into some early minor turbulence, Asia’s second biggest IPO of the year is set to take off later this week in Hong Kong when aircraft leasing company BOC Aviation begins trading in what should be a relatively buoyant debut. But the ride to market is looking a bit rockier for Lufax, with reports that what could become the first IPO for a P2P lender is being delayed until next year. Lufax had earlier signaled it planned to make its listing this year, most likely in Hong Kong or Shanghai. But its plan is being delayed as Beijing moves to clean up the nation’s unruly P2P lending market.  Read Full Post…

FUND RAISING: Meituan-Dianping, JD Finance, Lufax Raise $5.5 Bln

Bottom line: A sudden spate of new mega-fundings by Meituan-Dianping, Lufax and JD Finance show there is still big interest in China’s private tech and finance sectors, despite the nation’s rapidly slowing economy.

Investors throw billions at Meituan-Dianping, Lufax, JD Finance

It seems I may have been a bit premature with my recent prediction that the mega-fundings that crested in China a year ago were finished. That’s my assessment after reading about 3 new mega-deals in the tech sector this week, all worth more than $1 billion. Leading the pack was recently merged group buying giant Meituan-Dianping, whose whopping $3.3 billion in new funding values the company at $18 billion.

That latest news came just a day after media reported another deal that saw peer-to-peer (P2P) lending giant Lufax just raise its own new funding of $1.2 billion, valuing the firm at $18.5 billion. Last but not least was announcement at the start of the week that the finance unit of e-commerce giant JD.com (Nasdaq: JD) had just raised 6.65 billion yuan, or just over $1 billion, valuing the firm at 46.7 billion yuan ($7 billion). Read Full Post…

IPOs: Guotai Zooms, Legend Lumbers, Toncheng Eyes China

Bottom line: A probable correction in China’s stock markets could cause Tongcheng to abandon its decision to list at home, and lead to a weak debut for Legend Holdings’ Hong Kong IPO.

Toncheng eyes China IPO

When the history books are written, the latest batch of IPO news could well mark the end of a brief but unusually buoyant period that has seen many Chinese companies eschew overseas stock markets for listings at home. Leading off the news was a sizzling performance by securities brokerage Guotai Junan (Shanghai: 601211) on its trading debut in Shanghai, as it become China’s biggest domestic IPO since 2010.

Another piece of IPO news also cast a spotlight on the hot Chinese stock markets, as online travel site Tongcheng said it was eying a listing at home in the next year, in a snub to New York where most of its peers are traded. Last but not least, the lukewarm reception for Chinese listings abroad was reinforced by Legend Holdings, parent of PC giant Lenovo (HKEx: 992), which failed to attract any major international investors as it priced its Hong Kong IPO. Read Full Post…

News Digest: June 27-29, 2015

The following press releases and media reports about Chinese companies were carried on June 27-29. To view a full article or story, click on the link next to the headline.
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  • Guotai Junan (Shanghai: 601211) Soars in Debut As China’s Biggest IPO Since 2010 (English article)
  • Didi Kuaidi Sets $2 Bln Target for Latest Fund-Raising Round (Chinese article)
  • JD.com (Nasdaq: JD) ZestFinance in JV to Expand Consumer Credit in China (GlobeNewswire)
  • Legend Holdings Sets IPO Price at HK$42.98, 45 Times Oversubscribed (Chinese article)
  • Xunlei (Nasdsaq: XNET), Xiaomi Ally to Release CDN Service Brand ‘Xingyu’ (English article)

FUND RAISING: Bubble Crests With Guotai IPO, Zhubajie Mega-Funding

Bottom line: A record IPO by Guotai Junan and massive private fund raising by a relatively unknown website reflect the overheated state of China’s capital markets, and could reflect a cresting of the current stock market rallies.

Guotai Junan eyes mega-IPO

With China’s stock market posting 2 consecutive days of large losses, everyone is starting to guess whether the current stock market rally may have finally crested and a period of correction begun. Two of the latest fund-raising headlines show just how frothy and ambitious activity has become, led by a plan for China’s biggest IPO in 5 years from securities brokerage Guotai Junan. The other headline comes in the venture funding space, where Zhubajie, a relatively unknown company in the hot crowdsourcing sector, has just landed an impressive 2.6 billion yuan ($420 million) in new funding. Read Full Post…