Yuan IPO might raise cash for Belt, Road

China Daily European Weekly - - NEWS DIGEST -

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.

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