Biz Scene: Grapevine

HK offer

China Dongxiang, which licenses Kappa-branded sportswear in China, yesterday kicked off pre-marketing for a Hong Kong initial public offering that is expected to raise up to $700 million, Reuters reported, citing a source.

The company is selling 1.375 billion shares in an offering sponsored by Merrill Lynch and Deutsche Bank, according to a term sheet.

Of the IPO shares, 86 percent are new and the rest existing shares.

The deal, which won stock exchange approval last week, also includes a 15 percent over-allotment option.

No new brokerages?

China may stop approving new brokerages for the next few years to increase financial efficiency in the country's capital market, Shanghai Securities News reported, citing unidentified people.

The Chinese regulator will instead allow brokerages to open more outlets as more investors open accounts amid the country's equity market rally, the newspaper said.

China has 107 brokerages, enough to meet the needs and the development of the country's equity investors, said the newspaper, without elaborating.

The China Securities Regulatory Commission won't approve new brokerages "in principle", Shanghai Securities said.

(China Daily 09/11/2007 page15)