Capital Calls: Boutique bank rides tech boom

China Renaissance Holdings

01/03/2021 08:25

(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own. Refiles to fix formatting.)
    HONG KONG, March 1 (Reuters Breakingviews) - Concise
insights on global finance in the Covid-19 era.
    
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PROFIT CHARMING. Technology-focused China Renaissance  1911.HK 
is doing better than some of its clients’ share prices. The Hong
Kong-listed investment bank said https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0301/2021030100033.pdf
 on Monday it expects a 311% rise in net profit for 2020. Gains
come from its investment management unit and its advisory work,
which included fintech lender Lufax’s  LU.N  $2.4 billion New
York initial public offering and the $3.5 billion Hong Kong
debut of JD Health  6618.HK . 
Shares jumped over 9% on the news, leaving China Renaissance
just shy of last month’s all-time peak. That only adds to its
relative priciness http://www.breakingviews.com/considered-view/boutique-bank-rides-chinese-unicorns-downhill/?bved=NDE%3D&bvshr=MTYwMzc1:
 the stock trades at 1.9 times estimates of its book value for
2021, versus 1 times for the Hong Kong shares of rival China
International Capital Corporation  3908.HK  and 1.4 times
international giant Morgan Stanley  MS.N .  
Bankers are off to a good start in 2021 with listings galore
planned but both those and the chances of China Renaissance
repeating its gains depend on stocks remaining all charged
up.(by Jennifer Hughes)
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