Countercurrent 1982

Chapter 1807 Listed in Hong Kong
For today's mainland companies, listing in Hong Kong is definitely their dream.

The strength of the Hong Kong stock market is enough to make any mainland company that dreams of breaking out of Asia and going global want to seize the fulcrum.

In 1992, "Big Times" was broadcast in Hong Kong, and the crowds were empty.While people recall the legends of the last generation in the stock market, a new era is slowly unfolding.

While "Big Times" was broadcasting, the chief designer drew a circle across the Shenzhen River.

In the 90s, rising Chinese companies urgently needed financial support.The chief designer also encourages Chinese-funded enterprises to expand outwards and attract foreign capital.

Li Yeguang, then chairman of the Hong Kong Stock Exchange, quickly realized that this was an opportunity of the times that the Hong Kong market could not miss. In 1992, Li Yeguang implored mainland state-owned enterprises to go public in Hong Kong.

That year, Tsingtao Brewery became the first mainland company to be directly listed in Hong Kong.Since then, the Hong Kong market has opened the era of "H shares".

The listing ceremony of Tsingtao Brewery was contrary to tradition. "From the day when the Hong Kong Stock Exchange was established, all companies listed were celebrated with champagne, but on the day Tsingtao Brewery was listed, it was Tsingtao Brewery!" "Father of H-shares", Liu Hongru wrote a book reviewing the Chinese securities market Written in development.

The Hong Kong Stock Exchange also specially reserved the stock code of 168 for Tsingtao Brewery, implying that it will go all the way.

Investors also reacted wildly.Tsingtao Brewery was released in the morning, but the applicants who received the purchase application form the night before lined up for several hundred meters. In the end, the oversubscription was more than 400 times, and hundreds of billions of funds were frozen.

Tsingtao Brewery has indeed lived up to the "168". This century-old store has accelerated its expansion and completed the leap from a corner of Pian'an to an international brand.

Li Yeguang's "Mainland Card" has also created a new world for the Hong Kong Stock Exchange.The value of the Hong Kong stock market has exceeded 1990 trillion Hong Kong dollars by the end of the 1s from 90 trillion Hong Kong dollars in early 7.

Although Tianyin Group is well-known in the mainland and has reached the point where everyone in the country is well-known, its popularity in the world is still pitifully small, and it cannot be compared with those well-known multinational companies in the world. Not only in terms of capital and technology, The same goes for popularity and soft power.

In fact, as early as a few years ago, Duan Yun also thought about listing his company in Hong Kong, but it was not realistic at the time. There is no need to report to the leaders of the higher authorities. However, there are many restrictions and problems in the qualification approval of listing in Hong Kong and the flow of funds between the two sides of the Taiwan Strait.

Speaking of which, Tianyin Group has maintained a very rapid growth trend since its establishment. Although the pace of expansion has been a bit large in recent years, there has never been a huge loss or insolvency. The asset situation has always been very stable. good condition.

But for investors in Hong Kong, they have always had a certain inherent understanding of mainland enterprises. On the one hand, because the mainland is a socialist country, state-owned enterprises can only be attributed to the state, and they are extremely opposed to privatization in essence. The mainland has also opened a stock exchange market. However, the mainland government has always firmly controlled the highest-quality state-owned assets in the country. Those companies listed in the mainland can only be regarded as mid-lower companies with poor profitability. The government cannot afford to "support" them. , can only be thrown to the society for "free-range breeding".

As for private enterprises in the mainland, they are even less favored by Hong Kong investors, because in their view, if mainland enterprises want to make money, they cannot do without the support of the local government. Compared with state-owned enterprises, they are just "illegitimate children" and are destined not to develop.

It is precisely because there are too many thresholds and difficulties in it, and Tianyin Group has always been profitable, so Duan Yun has only considered the Hong Kong listing, but has no such strong sense of urgency.

But now, Duan Yun is no longer satisfied that his products are only selling well in the mainland, and since a few years ago, he has begun to deploy overseas, opening R&D centers in the United States and Europe, in order to be able to turn Tianyin Group into A well-known multinational enterprise.

However, if he wants to become a multinational company, Duan Yun urgently needs a large amount of foreign exchange to import various advanced technologies and equipment from abroad, especially in the past two years, because overseas R&D centers have invested more and more, and imported goods have increased. More foreign exchange is needed, and domestic foreign exchange transactions are still very restricted, which makes Duan Yun have to find ways to obtain foreign financing through other channels. It is precisely because of this that Duan Yun first sought financing. Yang Shoucheng came to invest in his own car company.

Moreover, compared with the mainland stock market, Hong Kong's stock market has many other advantages.

For some companies with brands and international business, listing in Hong Kong can give the company an opportunity to publicize and promote the company's business in the international capital market through the listing process.

Hong Kong listed companies receive extensive and sophisticated research coverage from international institutional investors and analysts.Through close contacts with international investment banks and international investors, it can provide the company with a more international perspective.

In addition, there are many financing methods that can be used in Hong Kong, including: placement, rights issue, convertible bonds, warrants, high-interest bonds, leveraged financing, etc.In fact, in the Hong Kong capital market, except for a few years, the scale of refinancing of listed companies has exceeded the scale of initial public offerings, which highlights the convenience of refinancing.

Although Duan Yun has always insisted that his group company does not go public, in order not to allow capital to influence his company's decision-making, especially the chip factory, which can be said to be the foundation and lifeblood of Tianyin Group at present, but he can definitely put his own Other branches of the company should go public, such as an automobile company with a relatively large foreign exchange fund gap, and an electronics factory that is very profitable but not internationally advanced in technology.

At the beginning, Duan Yun’s real estate company and automobile factory also sold their shares to the government and central enterprises to find a solid backer for their company in order to gain a foothold in China. If Duan Yun wants the company to take a multinational strategy, he also needs With the help of international capital, we can find strong partners overseas.

Moreover, even if it is listed in Hong Kong, Duan Yun will firmly control more than half of the shares. The leading power of the company must be in his hands. Opportunities to publicize and promote your company's brand products with the help of overseas capital.

All in all, listing in Hong Kong is not a perfect choice, but the advantages definitely outweigh the disadvantages.

(End of this chapter)