The company said it plans to use the proceeds to enhance its supply chain and open nearly 700 stores in China over the next two years. Nayuki's share sale has attracted a group of cornerstone investors, including UBS Asset Management, China Universal Asset Management, GF Fund, China Southern Asset Management and CCB International, according to its prospectus. Nayuki, whose popular fresh-fruit teas include cheese-foam-topped beverages, has set up over 560 stores in more than 70 cities at home and abroad within five years since its founding. "The tea, as one of China's most representative products and culture, has a great opportunity to expand overseas to become a global brand, especially amid China's rising power and globalization trend," said Nayuki's founder, Peng Xin. Institutional books closed a day earlier than scheduled due to demand. The stock opened trading at HK$18.86.ĭespite the cooling performance, the IPO raised $656 million and the retail portion was subscribed 432 times. The Shenzhen-based company closed at HK$17.12 ($2.21) on Wednesday, lower than its initial public offering price of HK$19.80, valuing it at HK$29.4 billion. Ĭhinese leading bubble tea company Nayuki made its debut on the Hong Kong stock exchange on Wednesday, which made it the country's first listed milk tea chain. The regulator has investigated 52 cases and adopted 77 administrative measures against companies that violated the regulation, according to Zhang.Ĭurrent Chinese securities regulation forbids shareholders owning more than 5 percent stake of a listed company from selling their shares within six months of their purchase.Ī selection of beverages and bread from Nayuki. The regulator vowed on Friday to step up the crackdown on illegal selling of shares by major shareholders and to enhance punishment for malpractices in information disclosure. Reuters also reported that the Chinese regulator had asked financial institutions in Hong Kong for stock trading records in order to identify investors who had taken net short positions against the mainland stock market.īut Zhang denied the report and said that the regulator has not been in contact with financial institutions in Hong Kong. The Shanghai and Shenzhen stock exchanges have imposed curbs on more than 20 stock accounts by institutional investors for possible trading irregularities. The regulator has adopted a series of unprecedented measures to lift the market, including prohibiting major shareholders of listed companies from selling shares, suspending IPOs and investigating short sales that may involve possible market manipulation. Market turnover shrank as volatility surged, indicating investor sentiment has not fully recovered to the level before the market peaked in mid-June. The benchmark Shanghai Composite Index fell 1.13 percent to close at 3,663.73 points, capping the worst monthly decline in six years. and it is a systematic and gradual process," Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, told a news conference in Beijing.Ĭhina's equities market has suffered a second dip after witnessing a massive 30 percent sharp correction after mid-June and in July.īeijing's pledge to adopt a proactive fiscal policy and maintain a prudent monetary policy to stimulate the economy failed to cheer the weak investor sentiment on Friday. "The launch of the registration-based system is a significant step in the nation's capital market reform. The new IPO system has been widely expected to be rolled out after the amendments of the country's Securities Law by the top legislature, which is to finish the last round of review in October. The regulator dismissed market concerns that the recent swings may delay the much-anticipated launch of the registration-based scheme for initial public offerings. Direction of capital market reforms in China will not see any major changes, says regulatorĬhina's securities regulator said on Friday that the temporary halt in new share offerings is a necessary measure to stem the ongoing stock market rout and the direction of the long-term, market-driven reform of the country's capital market has not changed.
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