Hebei Construction US$297m IPO is first in Hong Kong to target China’s massive Xiongan project
The company is pitching its ‘advantageous position’ to benefit from Beijing’s plan to develop the rural Xiongan area into a mega economic zone
A share offering this week of up to HK$2.32 billion (US$297 million) by China’s Hebei Construction will be the first listing in Hong Kong of a company linked to Beijing’s ambitious Xiongan special economic zone project.
Xiongan New Area, established in April and just a couple of hours south of Beijing, is part of China’s efforts to transfer some functions out of the increasingly crowded capital and find new growth drivers led by innovation and technology.
Some analysts have put the possible investment in developing infrastructure in the area, which is currently mostly farmland, at up to US$583 billion over the next 20 years, although the government has yet to unveil its blueprint for the zone.
“For sure we can have a finger in the pie,” said Shang Jinfeng, president and executive director of Hebei Construction, at a media briefing on the listing in Hong Kong on Monday.
“We have geographical advantages, advantages in transporting equipment and ‘green infrastructure’ experience, which is in line with the state’s goal to build Xiongan into a green, liveable and modern urban area,” he said.