Shenzhou International will be competing with other large issues as it raises funds to boost production and pay debt
China's top knitwear exporter, Shenzhou International Group, plans to list its shares on the Hong Kong stock market before the end of the year.
The privately owned textile manufacturer this week said it had received approval from the Hong Kong stock exchange to list 25 per cent of its shares, with BNP Paribas Peregrine Capital as the sole global co-ordinator, sponsor, bookrunner and lead manager of the offer.
It will come to a market digesting a large year-end listing programme and will have to persuade investors to choose textiles - a sector facing strong protectionist pressure in the United States and the European Union - over banking and real estate, two favourites among Hong Kong stockpickers.
'Of our production, 95 per cent is exported and 90 per cent goes to Japan, which has no quotas,' chairman Ma Jianrong said in Ningbo. 'The Japanese market is hard to enter but stable once you get in. We have good, long-term partners there.
'Our products are very competitive in the international market and will put increasing pressure on EU and US garment producers. The 'special protection' and anti-dumping measures against Chinese goods could become more severe and unreasonable.'