Chinese bubble tea manufacturers bringing back plans for their initial public offerings after Beijing's loosened restrictions could bode well for Hong Kong's IPO market, Bloomberg News reported Tuesday.
Guming's revival of its IPO plans in Hong Kong following approval by China's securities regulator of listing a year after it submitted requirements could be a positive sign for the rest of the sector, the report said, citing Christine Xu, a partner at Linklaters in charge of Chinese equity capital markets transactions.
Other bubble tea companies are already looking to get their offshore listings approved, the report said, citing people familiar with the developments.
China hit the brakes on share sales from select sectors such as the bubble tea sector in 2023, such as that of Mixue and Auntea Jenny, whose IPO applications lapsed after Chinese regulators did not approve in time.
Despite the seeming progress, "No one has the crystal ball for the regulatory approval process," Bloomberg quoted Xu as saying.
The approval could also bode well for Hong Kong's weak IPO market, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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