Several Chinese companies are rethinking fundraising plans in Hong Kong as anti-government protests rock the city — an ominous sign for its future as a financial gateway between Asia's largest economy and the rest of the world.
One company scrapped preliminary preparations for a $500 million initial public offering in Hong Kong partly because of the unrest, and will instead pursue a U.S. listing, according to a senior banker on the deal, who asked not to be named discussing private information. Another banker said at least two companies are considering the same move for IPOs worth a combined $1 billion, adding that final decisions will depend on market conditions and whether the turmoil in Hong Kong eases.
While the deals amount to a small portion of the money raised by Chinese businesses in Hong Kong in recent years, they bode ill for the city's status as one of the world's premier financial hubs.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.