China Resources Pharmaceutical Group, part of the state-owned megacorporation China Resources, is planning to tap the capital markets in Hong Kong for a $1 billion initial public offering, according to a report by Reuters.
CR Pharma is asking banks that want to play a role in the listing to submit proposals by Feb. 16. Little news is expected this week on any transaction with China markets shut for the Lunar New Year holiday.
The move is a bit surprising because of the market volatility that has shaken China since the first of the year and has led to some companies pulling planned IPOs.
The volatility has shaken other markets, but China has been most affected with both the Shanghai and Shenzhen Composite Indexes down more than 20% this year. The Hang Seng in Hong Kong has also fallen by more than 10%.
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According to a report by the Wall Street Journal, at least 6 companies have pulled planned Hong Kong IPOs since the second half of last year and two in January alone.
- here's the report from Reuters and one from WSJ