HK listing first sparks PRC interest

Author: | Published: 7 Sep 2010

A PRC company’s privatisation and simultaneous Hong Kong listing by introduction could pave the way for more Chinese companies taking a similar approach.

Guangzhou Automobile Group’s (GAC) listing was effected simultaneously with the privatisation of Denway Motors, by way of a scheme of arrangement.

The deal, a first of its kind in Hong Kong, was structured to take into account both GAC and Denway’s joint ventures with other companies. It could be used as a template for firms wishing to tap the H-share market.

Kay Ian Ng, managing partner of Freshfields in Hong Kong,...