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Taking over another exchange is the last thing we need

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Why you can trust SCMP
Shirley Yam

With the Singapore Exchange announcing an US$8.3 billion merger with its Australian peer to create the world's fifth-largest bourse, all eyes are on the Hong Kong stock exchange.

Let's do something about it or we will lose out, many have said. How about marrying the mainland bourse? How about the London Stock Exchange?

To these noises, the listing of the Sihuan Pharmaceutical provides the best answer.

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The Sichuan-based company owns the largest heart drug franchise in China. Two weeks ago it sold HK$5.5 billion worth of shares. The deal was so hot that it was subscribed 480 times.

On its first day of trading, Sihuan traded up to HK$5.85 from a HK$4.60 public offering price. That gives the company a price tag of HK$24.6 billion.

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It is not just another story of successful listing. Only a year ago, the management removed Sihuan from the Singapore exchange where it was listed with a valuation of HK$2.33 billion. That was three years after a listing there.

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