Yuan IPO might raise cash for Belt, Road
The government is considering giving a green light to high-quality companies involved in the Belt and Road Initiative to raise funds through a yuan-denominated initial public offering in the Hong Kong stock market. The move would strengthen the market’s role as a key offshore yuan business hub, according to a former vice-minister with the nation’s top economic regulator. The government would select some top companies related to the initiative and facilitate their fundraising in the offshore market, but there is no timeline for when an IPO plan might take place because it remains under discussion, says Zhang Xiaoqiang, vice-chairman of the China Center for International Economic Exchanges. Zhang was consulted on the development plan for the Guangdong-Hong Kong-Macao Greater Bay Area, which has not yet been publicly released. Hong Kong’s lack of restrictions on capital and currency convertibility makes it ideal as a core center for raising capital for Belt and Road Initiative-related projects, Zhang says.