Four Chinese firms seek IPOs in city

Staff reporter and agencies

Four Chinese firms have applied for initial public offerings in Hong Kong amid a drive by Beijing to encourage more A-share giants to list in the city.

The four include high-end tea brand Bama Tea, Chinese fast-food chain LXJ International, calcined kaolin products producer Anhui Jinyan Kaolin New Materials and Videotimes Technology, a manufacturer of baby monitors and related devices.

Two other firms are also looking to raise cash in the city, one through a second listing, and another through a share placement.

Fosun International's (0656) jewelry unit Shanghai Yuyuan is considering a secondary listing and may seek over US$300 million (HK$2.3 billion) in funding.

And China's XtalPi (2228) plans to place 264 million new shares to raise HK$1.13 billion to upgrade its products and enhance its research and development capability.

The shares to be placed are priced at HK$4.28 apiece, indicating a discount of 7.96 percent to Friday's closing price of HK$4.65.

Meanwhile, Ascentage Pharma Group International - B (6855) is looking to list in the US this week and raise up to US$100 million, according to an IFR report.

At last week's Asian Financial Forum, the People's Bank of China governor Pan Gongsheng vowed to boost financial connectivity between the mainland and Hong Kong and revealed plans to facilitate more high-end firms to list or issue bonds in the city.