Rusal fallout fears eased
The ban on a public offering of UC Rusal (0486) shares has not
dented interest by other foreign companies involved in energy and
natural resources in a Hong Kong listing, according to the head of
the local bourse operator.
Rusal was initially allowed to sell shares to only institutional
investors.
Most of the companies that have expressed interest in a Hong Kong
listing are in the energy and resources sector, with bases across
the globe including Brazil, Nigeria, Canada and Russia, said Hong
Kong Exchanges and Clearing (0388) chairman Ronald Arculli.
"A Brazil-listed energy company has showed interest in listing
here," Arculli said. Company representatives visited HKEx a few
weeks ago together with their investment bank adviser.
In a visit to Vancouver and Toronto last month, Arculli said, some
firms dealing in resources mentioned their interest in listing
here. And at least one or two Russian companies are also
considering Hong Kong.
He declined to say whether HKEx is now in direct competition with
the London stock exchange, which previously dominated the listing
market for resources firms. "Companies believe Asian, especially
Chinese, investors, would be the main stream for the initial public
offering market and the Hong Kong bourse would be their top
priority,"Arculli said.
HKEx will visit Nigeria this year and travel to Russia again to
underline SAR's status as an international financial center. The
Rusal case has not hurt sentiment, Arculli said.
"Companies know it's only a special case for Rusal [that it was
prohibited from selling to retail investors]," he said. Referring
to the unprecedented move by the Securities and Futures Commission
to freeze HK$997.4 million assets of Hontex International (0964),
Arculli said:"Disclosures are mainly the responsibility of listed
firms and HKEx approves their listings according to the information
they provide."
He said there is no likelihood that the duties of the listing
division will be taken over by the SFC.
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