SenseTime IPO could help HSBC gain recognition

Haitong International Securities

26/11/2021 01:59

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, Nov 26 (Reuters Breakingviews) - It’s the only
Western lead adviser on the AI dragon’s mooted $2 bln Hong Kong
market debut. The issuer’s spot on a U.S. blacklist adds a
degree of difficulty to the large Chinese stock sale. That makes
it an especially bold way to showcase renewed investment banking
ambitions. 
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    CONTEXT NEWS
    - Chinese artificial intelligence start-up SenseTime secured
approval on Nov. 19 for an initial public offering in Hong Kong,
according to multiple media sources. The company develops image
recognition for cities and autonomous driving, among other
applications, and designs software for the metaverse, a newly
popular investment area. 
    - SenseTime is one of several companies on a U.S. blacklist
that requires component makers to obtain official approval
before they can sell their products to them.
    - The company has not yet provided a fundraising target, but
is expected to raise up to $2 billion, according to multiple
media reports.  
 

 (Editing by Jeffrey Goldfarb and Katrina Hamlin)
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