Brokerage Huatai Securities hopes to raise more than US$2.93 billion in an initial public offering in Shanghai ahead of possible market reforms, the Financial Times reported. Margin trading and short selling, long promised on domestic markets and expected to be introduced in the next few months, are expected to boost the business of domestic brokerages. However, analysts warned that weak demand for new IPOs, and the possibility of further large listings, could hurt the prospects for Huatai’s offering – recent IPO disappointments include China Erzhong Heavy Industries and China XD Electric. Domestic brokerages raised US$5.12 billion in share offerings in 2009.
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