China greases the wheels of outbound M&A

Bookrunners fail to bring home the bacon after the company decides to pull its Hong Kong listing.

The Chinese pork producer unveiled a slimmed down deal of $1.34 billion to $1.88 billion after a difference of opinion between issuer and investors on pricing.

It could yet succeed a second time, helped by improved market sentiment, a slimmed-down syndicate team, tighter pricing and record quarterly earnings.

Slowing loans, M&A and ECM hit banks' fees last year. Technology, exports and bonds are bright spots, while Hong Kong is increasingly being seen as a place to raise foreign capital. PBOC's governor Pan Gongsheng wants a proactive policy approach.

Bankers have set the price range for Hong Kong's largest IPO in four years and started travelling to meet investors. So far, demand for the pork producer appears robust.

Chinese private equity firm breaks lockup by returning to market with a new $806 million deal only two months after its last divestment.