Zijin Mining Group is launching a $1.5bn IPO in Shanghai reports the FT’s Geoff Dyer.
The second largest gold miner in China, this Hong Kong-listed group will be testing investor appetite for new issues with its share sale over the next week. Given the 40 per cent drop in the Chinese markets since October, many companies have announced plans to issue shares although few have followed through on the basis of poor market conditions.
Zijin has a strong reputation, however the recent drop in the gold prices might result in uncertainty among investors.
Mainland China shares rose 4.5 per cent Monday, and held onto those gains, just about, on Tuesday:
Investors took the Zijin announcement as an indication that China’s market had reached the bottom.
It is expected that more IPOs will follow. You can keep track of China’s IPO market through an FT Alphaville favourite, the Xinhua Finance/Milken Institute indicator.
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Brace yourselves – China’s IPO market might be on the turn – FT Alphaville, Jan