Hong Kong snubbed for another IPO as rival Shenzhen gets Focus Media
After failing to win over Alibaba last year, the city has now lost Focus Media to Shenzhen
When e-commerce giant Alibaba Group Holding eventually decided to list in New York last year, some Hong Kong officials and bankers sought to defend the snubbed city's long-standing reputation as one of the world's leading financial centres.
"Don't worry. Others will still come to Hong Kong after Alibaba" was the main message heard at the time. The result? Yet another disappointment this month.
You may remember a company called Focus Media, which was once listed on the technology sector-focused Nasdaq market in the United States.
In 2013, the Shanghai company surprised the market by delisting from Nasdaq, signalling a change in sentiment towards the US market among Chinese entrepreneurs.
Private equity funds including Carlyle helped the management of Focus Media take it private and the company was widely expected to seek another listing, in Hong Kong.
Focus Media's delisting happened about the same time Alibaba tried to float its shares, initially aiming to do so in Hong Kong. Alibaba failed to negotiate a deal with the Hong Kong stock regulator largely because of disagreements over its shareholding structure.
Although Focus Media's market capitalisation could hardly match that of Alibaba, many bankers still strongly expected it to relist in Hong Kong - boosting confidence in the city's market and its appeal for technology companies after the Alibaba setback.