China IPO boom is becoming a game of two halves

China Renaissance Holdings

29/07/2021 08:54

(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
    HONG KONG, July 29 (Reuters Breakingviews) - Shares in China
Renaissance  1911.HK  leapt 10% on Thursday after the investment
bank said its year-on-year profit would almost treble https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0728/2021072800455.pdf
 to 1.2 billion yuan ($185 million) in the six months to June.
Its now-profitable securities unit and its private equity funds
both helped. But the full update, due next month, is likely to
show the investment bank was a key driver.
    The tech-focused lender rose to 11th in the league table for
offshore Chinese equity offerings so far this year, up from 18th
in 2020, per Dealogic. The data provider calculates the bank has
so far earned $30 million in fees, just shy of its takings for
all of 2020. Yet Chinese listings have dried up this month
following a series of crackdowns  urn:newsml:reuters.com:*:nL1N2P404K by Beijing on
various sectors, including questions about the structure used by
many firms to list offshore. Bankers expect a recovery of sorts
as investors settle down, but chances are the second-half
showing won’t be so exuberant. (By Jennifer Hughes)
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 (Editing by Antony Currie and Katrina Hamlin)
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