Poly Culture Group plans Hong Kong listing after shunning Shanghai

The culture and auction business unit of the powerful state-owned Poly Group is preparing to choose Hong Kong for its public listing after abandoning its planned initial public offering on the Shanghai Stock Exchange earlier this year amid regulatory uncertainties on the mainland.

The Poly Culture Group, whose parent company is the Poly Group - a state-owned conglomerate with business in arms exports, real estate and mining, among other things - plans to raise about US$100 million through an initial share sale in Hong Kong, sources familiar with the situation say.

If successful, Poly Culture would become the first major auction house to go public outside the mainland, helping the Beijing-headquartered firm raise its international profile after engaging in rapidly increasing competition over recent years with global players such as Christie's and Sotheby's.

"If everything goes smoothly, Poly will be able to have its listing hearing in Hong Kong as early as in November," said one source. "This is the preliminary schedule. Of course, if the market environment suddenly changes, the deal may be delayed until next year."

Poly Culture has three core business lines: art auction and management, theatre management, and investment in the film and television business.

It is a rising star in the global art auction industry. The company became known worldwide after its museum in Beijing became the new home for historic bronze sculptures of ox, tiger, monkey and pig heads looted from the Old Summer Palace in Beijing by British and French forces in 1860. The thefts took place during the second opium war, in which the Qing dynasty government was defeated.