China bike sharing startup Hello scraps US IPO


It is one of the first big causalities of Beijing’s crackdown on overseas listings
Newsfeed28 Jul 2021
Photo credit: AFP Photo


MAINLAND CHINA & HONG KONG

Chinese bike sharing giant Hello Inc has formally scrapped plans for a US initial public offering (IPO), becoming one of the first big casualties of Beijing’s crackdown on overseas listings.

The company requested a withdrawal of its registration for a US share sale, saying it no longer wanted to conduct the offering at this time, according to a filing Tuesday (27 July). It did not provide further details.

The Shanghai-based startup, which is backed by Chinese tech mogul Jack Ma’s Ant Group Co Ltd, first disclosed its IPO plans in April. Credit Suisse Group AG (CSGN SW), Morgan Stanley (MS US), and China International Capital Corporation (3908 HK) had been lined up to serve as underwriters for the offering. The company is valued at about USD5b, according to data provider CB Insights.

The Shanghai-based startup – previously known as Hellobike – is one of the few firms to survive China’s bike sharing bubble, which attracted billions of dollars in investment at its height. Its investors include Ant Group, GGV Capital, and Shanghai-listed Youon Technology Co Ltd (603776 CH), according to its earlier IPO filing. – Bloomberg News.

The Hang Seng Index tumbled 4.22% to 25,086.43 and the Shanghai Composite Index fell 2.49% to 3,381.18.

 

REST OF ASIA

Australia’s biggest companies are headed for a challenging earnings season, as investor wariness about Covid-19’s resurgence overshadows expectations of stellar results.

The country’s continued economic expansion and past success in containing the virus have lifted profit estimates for the S&P/ASX 200 Index to their highest in over a decade. But that optimism around earnings is being tested by delta-variant outbreaks that have sent Australian cities into snap lockdowns.

Australia’s stock benchmark is trading at record highs, with its 13% surge in 2021 handily beating the MSCI Asia Pacific Index that has erased all its gains for the year. The S&P/ASX 200 is up 1.6% so far in July, the strongest performance of any developed market in the region.

Still, the gauge has a lot of catching up to do when compared to its global peers – it remains at the lowest level in more than two decades relative to the MSCI World Index, according to data compiled by Bloomberg.

Investors will keep a close eye on how companies are handling growing costs and supply chain issues as the global economy picks up. – Bloomberg News.

Australia’s S&P/ASX 200 Index opened little changed at 7,424.90 on Wednesday (28 July) morning. It gained 0.24% to 3,232.53 on Tuesday.

South Korea’s Kospi Index fell 0.10% to 3,229.40 at the open on Wednesday. The benchmark tumbled 0.91% to 3,224.95 the previous session.

The Taiwan Stock Exchange Weighted Index fell 0.77% to 17,269.87.

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