Advertisement

Red chips make fresh $223m

Reading Time:2 minutes
Why you can trust SCMP

Red chips China Pharmaceutical Enterprise Investment Corp and Casil Telecommunications Holdings have scored well with share placements, raising a total of $223.6 million.

Advertisement

Last week, Beijing Enterprises Holdings' parent company, Beijing Enterprises Investments, raised $415.5 million in a private share placement.

This trend could continue, according to brokers.

They said other companies were likely to seek funds to cash in on Hong Kong investor appetite for mainland plays.

Much of the success of the recent red-chip offerings was the result of heavy buying from investment funds.

Advertisement

They were focusing these plays because of expectations that Beijing and Washington soon would reopen negotiations on the mainland's entry into the World Trade Organization, a fund manager said.

Advertisement