Hong Kong Exchange approves RMB-only IPOs

The Hong Kong Exchanges and Clearing (0388.HK) will allow listing candidates to sell their shares solely in renminbi, as well as in both renminbi and Hong Kong dollars, as part of a new listing model contained in guidelines released yesterday, the South China Morning Post reported. Listed companies that have already issued shares in Hong Kong dollars will also be able to issue new shares in renminbi. The dual option will suit companies that want to raise funds in renminbi to finance their development in the mainland, a representative from the exchange said. The exchange has already allowed a real estate investment trust, Li Ka-shing’s Hui Xian (87001.HK), to conduct the first renminbi-denominated IPO in Hong Kong. The REIT had a less-than-stellar market debut, dropping 9.35% on its first day of trading in April.