|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||12.00 - 12.00|
|52 Week Range||10.48 - 16.26|
|Beta (5Y Monthly)||0.74|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.68 (5.65%)|
|Ex-Dividend Date||May 13, 2020|
|1y Target Est||N/A|
Shares in China Pacific Insurance Co (CPIC) rose on their London market debut on Wednesday, in a boost for a stock exchange link-up between Britain and China designed to improve investment and trade relations between the countries. CPIC said it had priced a $1.8 billion listing of global depositary receipts (GDRs) in London at $17.60 per share, making it the biggest listing on the London Stock Exchange this year so far. "The listing will support our expansion into new markets and facilitate the company in introducing high-quality investors around the world," Kong Qingwei, chairman and executive director at CPIC, said in a statement.
China's stock market regulators have allowed one of the nation's biggest insurers to list its shares in London under a year-old stock exchange cooperation scheme, putting fragile Sino-British ties to the test.China Pacific Insurance, the fourth-largest by revenue, plans to issue 126 million global depositary receipts (GDRs) on London Stock Exchange after getting approval from the China Securities Regulatory Commission, it said in a filing on Wednesday.The GDRs represent about 10 per cent of the insurer's A shares traded on the Shanghai stock exchange, it said. Swiss Re, the world's second-largest reinsurer, will take up part of the offering, it added. The listing is subject to approval from LSE, which did not immediately reply to an email seeking comment.Despite potential risks stemming from the UK's stance on Hong Kong, China still has a better relationship with the country than with the US, Alan Li, portfolio manager at Atta Capital in Hong Kong."The UK may be performing its duties under the Sino-British Joint Declaration, but it has not gone towards the direction of sanctions or containment of China [like the US]," said Li. "China may quicken the development of the Stock Connect to cushion the impact from the US." Boris Johnson vows historic overhaul of visa system to accommodate Hongkongers under national security lawThe Shanghai-based insurer is only the second company to be approved for listing under the so-called Shanghai-London Stock Connect programme launched in June 2019. Brokerage Huatai Securities is its first and only listing to date.Since then, however, Sino-British relations have deteriorated over the UK's perceived support for the pro-democracy movement in Hong Kong that took off shortly after the stock market cooperation, prompting China to freeze listing approvals.China has revived the stock programme amid heightened hostility with the US, as the Trump administration threatened to shut out Chinese companies from American stock exchanges.The China Pacific Insurance announcement came on the same day Prime Minister Boris Johnson said Britain is prepared to give Hongkongers with British National (Overseas) passports a path to citizenship. The move was in response to China's decision to impose a national security law on Hong Kong.Swiss Re has agreed to subscribe for up to 1.5 per cent of the overall stake, which will be subject to a three-year lock-up period, according to today's announcement.The listing may be a drawn out affair. Huatai Securities, based in Jiangsu province, raised US$1.54 billion through the Stock Connect programme a year ago. Its June 17 debut took nearly seven months, between the CSRC approval in November 2018 and LSE's on June 4.The resumption of London listings could also provide another avenue for some of the nation's biggest companies to tap global capital for expansion as they struggle to climb out of the depths of an economy battered by the Covid-19 pandemic.Chinese regulators have recently resumed approving such listing applications, the South China Morning Post reported earlier, as they seek to hedge against an intensifying clampdown on Chinese companies listed in the US.For example, the US Senate passed a bill last month that could potentially delist Chinese firms from US exchanges, after President Donald Trump banned the main federal pension fund from investing in Chinese companies.China Pacific Insurance rose as much as 2.3 per cent in morning trading in Shanghai on Wednesday after the announcement. Its stock in Hong Kong climbed by as much as 4.8 per cent.The new share issuance is unlikely to weigh on the price of its existing shares, given the amount was just 10 per cent of its A shares, Bocom International said in a report on Wednesday.The introduction of Swiss Re, which is estimated to subscribe to 16.5 per cent of the GDRs, as a cornerstone investor will help the Chinese insurer enhance its corporate governance and quicken its global expansion, the report says. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
China is urging domestic companies to look at listing in London, several sources told Reuters, as the country aims to revive deals under a Stock Connect scheme and strengthen overseas ties in the wake of the coronavirus crisis. The Shanghai-London Stock Connect scheme, which began operating last year, aims to build links between Britain and China, help Chinese companies expand their investor base and give mainland investors access to UK-listed companies. The original plan was for several companies to take part in the scheme in the first couple of years, but so far only one company -- Huatai Securities -- made the trip from Shanghai to London last June.