Hong Kong placements suggest confidence is up

Pre-IPO shareholders cash in $702 million worth of shares in Belle, while an undisclosed seller offloads $87 million of stock in Shenhua Energy.

A strong day in the Hong Kong stockmarket yesterday prompted shareholders of two major companies to sell part of their holdings, raising a combined $789 million. One might question why they are selling while the stocks are still well below their highs, but the two block trades in shoe manufacturer and retailer Belle International Holdings and coal miner China Shenhua Energy nevertheless sent positive signals to the market.

Belle was priced above the mid-point of the range, suggesting investors are...

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