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To: TFF who wrote (2059)	1/1/2004 12:07:19 PM
From: TFF	Respond to of 2802

Hong Kong expecting surge in IPOs By Justine Lau in Hong Kong Published: December 30 2003 12:04 \| Last Updated: December 30 2003 12:04 The volume of initial public offerings in Hong Kong is set to grow 70 per cent next year as large Chinese companies continue to seek listings in the territory, according PricewaterhouseCoopers (PwC). The accounting firm expects 100 companies to go public in Hong Kong in 2004, raising about HK$100bn ($12.9bn) compared with HK$59bn this year. IPOs by Chinese companies - which are expected to be bigger than those that listed this year - may account for 80 per cent of funds raised. "Next year is going to be a good year for the capital market as Hong Kong is still the most attractive place for Chinese companies to seek listings," said Richard Sun, a partner at PwC. Seeking to capitalise on investor optimism towards China's fast-growing economy, mainland companies have been flocking to Hong Kong, reviving a market that was badly hit by Sars in the first half of this year. Hong Kong' two boards, the main board and the growth enterprise market (GEM), this year hosted 73 IPOs, raising about HK$59bn, the highest volume since the technology bubble in 2000. Among the new listings, 18 were by China-incorporated companies, known as H-shares. These tapped over HK$50bn from local investors, or nearly 85 per cent of the total funds raised. China Life, the country's biggest insurer, staged the world's biggest IPO this year after raising about HK$26bn ($3.4bn) in a global offering earlier this month. PICC, China's largest property insurer, raised about HK$6.2bn (US$799m) in November. "We will definitely see more listings in Hong Kong next year but in terms of how much will be raised, it will largely depend on China Construction Bank and Minsheng Bank," said Peter Lai, director of OCBC Securities in Hong Kong. China Construction Bank, the country's third-largest lender, is expected to raise as much as HK$39bn (US$5bn) while Minsheng Bank, China's only privately owned bank, might raise HK$8bn (US$1bn) in an IPO in Hong Kong next year. Ping An Insurance, Shanghai-based Semiconductor Manufacturing International and fixed-line provider China Netcom are also expected to raise up to HK$39bn (US$5bn) together. PwC's Mr Sun said Chinese financial and insurance companies could raise up to HK$50bn in Hong Kong next year, while mainland aviation and telecom companies could account for HK$20bn. He said the rest could come from the Hong Kong government, which is expected to privatise some of its infrastructure projects such as tunnels and bridges next year.