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Beating the slowdown by banking on S.O.E. reform

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Beijing's plan to restructure state-owned enterprises (SOEs) has created opportunities for investment bankers struggling for business in traditional segments amid a market downturn.

While many investment banks have suffered lately as issuers have delayed their initial public offering (IPO) plans, Reorient Group, a new financial firm managed by veteran Hong Kong and Western investment bankers, sees SOE restructuring as one of its focus areas.

'Yes, the initial public offering market has performed very badly recently, but conducting IPOs is not the only business for investment banks,' Reorient executive managing director Angelina Kwan said.

The euro-zone crisis triggered a 12 per cent drop in the Hang Seng Index last month and many firms, including jeweller Graff Diamonds, have put their listing plans on hold to wait for stronger market sentiment.

'The current market situation may not bode well for mega IPOs but could provide the right climate for mergers and acquisitions. The two markets are not linked,' Kwan said.

'We are here to help SOEs restructure, dispose of assets, or find potential merger and acquisition opportunities as well as assist Western and Asian companies seeking SOE assets.

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