HSBC to Invest IPO Proceeds in China

HSBC Holdings will use all the proceeds from its IPO sale in Shanghai for expansion on the mainland, reports the South China Morning Post, citing chief executive Michael Geoghegan.

 

"[The IPO proceeds] will be invested in China," Geoghegan told the newspaper, adding that the bank is ready to list and is only waiting for the regulator's final decision on foreign businesses issuing A shares. HSBC is among the top candidates to become the first foreign company to issue yuan-denominated shares on the Shanghai exchange, notes the Post.

 

In May last year, Beijing said it would let foreign companies raise funds on the Shanghai exchange following the State Council's endorsement of the city's goal to become a global financial centre.

 

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