Key Takeaways:
Kinwong Electronic (603228.SH), an A-share maker of printed circuit boards for AI servers, cleared the Hong Kong stock exchange's listing hearing, moving a second listing closer for the Shenzhen-based supplier.
The approval, granted yesterday, puts the company on track to sell shares on the Main Board of Hong Kong Exchanges and Clearing (00388.HK). Kinwong's A-shares closed down 3.364% at RMB104.60 in Shenzhen, a decline that came alongside heavy short selling in the Hong Kong bourse operator itself, where short turnover reached $316.54 million, or 27.49% of the day's HKEX turnover.
Taotao Vehicles (301345.SZ), a manufacturer of electric low-speed vehicles, cleared its own hearing on Monday and plans to list in Hong Kong as early as this month, raising about $250 million, according to the filing disclosure. Taotao's Shenzhen-listed shares rose 1.554% to RMB239.20.
Neither company has disclosed an offer price, deal size in Hong Kong dollars, cornerstone commitments, use of proceeds or a listing date. Under the exchange's hearing process, a passed hearing is a procedural clearance, not a guarantee of listing; issuers must still complete bookbuilding and pricing before trading begins.
The two approvals extend a run of A-share issuers seeking Hong Kong listings to tap offshore capital and narrow the valuation gap with mainland peers. Goldman Sachs cut its price target on HKEX to HK$532 while maintaining a Buy rating, a revision that followed the exchange operator's own share decline of 0.906%.
For Kinwong, the Hong Kong listing would give the company a second currency for funding capacity expansion tied to AI server demand, where PCB content per rack has risen as accelerator counts climb. The company competes in that supply chain against larger rivals including Shennan Circuits (002916.SZ) and Victory Giant Technology (300476.SZ), both of which trade on the Shenzhen exchange.
The pricing of Kinwong's Hong Kong tranche will set the reference discount or premium against its A-share close, the number that determines whether the deal draws institutional demand. Investors will watch the prospectus for the offer range and cornerstone list, and Taotao's first day of trading, expected this month, will test appetite for small-cap Hong Kong floats.
This article is for informational purposes only and does not constitute investment advice.
