Hong Kong's first renminbi IPO prices at the bottom

Retail demand for the new product is less enthusiastic than expected, but Hui Xian Reit still raises $1.6 billion in Hong Kong's largest IPO this year and marks yet another milestone in the development of an offshore renminbi market.

<div class="ArticleImageCaption" style="text-align: left;"> Hui Xian Reit offers investors an alternative to low-return bank accounts.(AFP)</div>

Anette Jönsson

April 21, 2011

Hui Xian Real Estate Investment Trust yesterday fixed the price of its initial public offering at the bottom of the offering range for a total deal size of Rmb10.48 billion ($1.6 billion) and a 2011 dividend yield of 4.3%, and on Friday next week will become the first entity to list renminbi-denominated equity units on the Hong Kong stock exchange.

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