Signs of new life in I.P.O. market

Hong Kong's dismal listings market has shown signs of a nascent recovery with some municipal-level mainland lenders and brokerage houses signalling they will retry offerings amid improving sentiment.

Listing candidates, including China Galaxy Securities and China Everbright Bank, plan to proceed with offerings in the second quarter to replenish their capital base for further expansion in increasingly competitive conditions at home.

Policymakers in Beijing have sent clear signals that the authorities will rein in credit, given concerns about rising inflation.

"Mainland financial firms are relaunching their long-awaited plans to go public in Hong Kong starting from this month," Deloitte Touche Tohmatsu partner Edward Au said. "Many of them have substantially slashed their original IPO size to attractive valuations."

State-controlled China Galaxy Securities, the country's seventh-biggest brokerage firm by assets, will seek approval on April 11 for a proposed flotation that could raise up to US$1.5 billion.

Along with other city commercial banks on the mainland, Shanghai-listed China Everbright Bank is making its third attempt to tap the Hong Kong market.