Bank IPOs handicapped by weak valuations

Depressed valuations in Hong Kong mean it is a big ask for banks seeking to list this year, upping the pressure on them to lean on relationships to get the deals done.
Sales pitches for Bank of Tianjin's IPO are expected to get tougher
Sales pitches for Bank of Tianjin's IPO are expected to get tougher

The investment bankers behind Chinese banks looking to list in Hong Kong expect an uphill struggle after the total market value of companies listed in Hong Kong companies fell below their net asset value for the first time in 18 years. 

The total market value of Hong Kong-listed stocks fell to 1.5% below their net asset value last Thursday, according to Bloomberg data, as capital outflows and the depreciation of renminbi weighed on investor sentiment.

Although the Hang Seng Index has since recovered nearly 800 points, shares in Hong Kong are still 4% below their forecast 2016 net asset value.

The benchmark...

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