Several mainland China retailers stated that they are pushing to have their initial public offering in Hong Kong before October. New disciplinary actions towards investment banks erroneously assisting companies for listing are to full take effect in October.
From that month going forward, investment bankers who fail to perform due diligence for firms that they sponsor at their market debut may face criminal charges. These charges carry penalities such as a jail time of three years and a fine of no less than HKD 700,000 if these investment banks fall short on due diligence checks on these companies.
One of these companies looking to take advantage of the period before this regulation is a Shanghai-based manufacturer of apparel for both men and women, La Chapelle. La Chapelle is seeking to obtain US$600 million through an offer in Hong Kong in September. Sources said that net profits at La Chapelle may very well double to around HKD630 million this year from last year, which could attract even more investors to the firm.
Join the Conversation