Zheshang Bank IPO leans on cornerstone investors

The Hangzhou-headquartered lender has come up with a deal structure for its $1.75 billion IPO pretty much identical to other recently listed banks in Hong Kong.

China Zheshang Bank may have launched Hong Kong’s biggest bank initial public offering in more than two years but it is unlikely to provide as much of a litmus test for underlying investor sentiment as initially hoped, given its heavy reliance on cornerstone investors.

Before the Zhejiang-based lender hit the market on Monday, there was little clarity as to whether nervy investors were again warming towards IPOs because of the limited deals seen in Hong Kong since the start of the year. Data from Dealogic shows 11 IPOs have raised just $853 million so far this year, the lowest total covering the same period in...

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