Fujian Shoe Enterprises Collectively "Go To Hong Kong" Or Difficult

A few days ago, the IPO promotion of XTEP shoes in Fujian in Hongkong was postponed for two days and began to be low-key.

It is understood that in addition to XTEP, Fujian is also interested in supporting 15 shoe companies to go abroad (mainly Hongkong).

However, insiders said that with the increase of trade pressure, the confidence index of offshore capital markets has decreased, while many shoe companies still need to standardize their financial management and market operation. This collective "going to Hong Kong" listing plan is hard to make.

According to plan, XTEP is expected to be officially launched in Hongkong at the end of this month or early June, with a fund-raising amount of at least HK $2 billion 400 million.

For the reasons that had been postponed, XTEP said that it was due to the need to provide additional information to the Hong Kong exchange.

It is understood that the current domestic footwear manufacturers concentrated in Fujian, Guangdong, Sichuan Chengdu and Zhejiang Wenzhou four major areas.

Fujian is one of the main production bases for tourism sports shoes. About 90% of them are concentrated in Quanzhou and Jinjiang, and have sports brands such as Anta, XTEP and PEAK.

In the middle of last year, relevant officials of the Fujian Footwear Association told reporters that Fujian local governments encouraged and supported overseas listing of footwear manufacturers, and suggested that every successful listed company could receive millions of cash incentives and enjoy special treatment on tax policy.

XTEP, gold lake, Xi De long, PEAK, Jordan sports, 361 degrees, Conway and so on have all entered the countdown to the market.

At the same time, guild is responsible for helping enterprises to find and select suitable brokerages and intermediaries, and provide guidance to enterprises.

Fujian's plan stems from a high investment enthusiasm in the capital market from 2006 to 2007.

In May, July and October last year, the mainland's largest women's shoe retailer BELLE, the second largest sports brand Anta, and the Chinese movement of Italy, the famous sports brand KAPPA, were listed in Hong Kong.

Among them, BELLE listed on the Hong Kong stock exchange to freeze funds of HK $438 billion, more than that of ICBC when it was listed, while Anta's public offering was 183 times oversubscribed, and its share price rose 42% on the first day of listing.

The popularity of Anta and other enterprises in the Hong Kong stock market has excited the excitement of other mainland shoe companies. Raising funds overseas has also become the preferred upgrading path for many family owned enterprises in Fujian.

"Last year, a lot of Hongkong investment institutions went to Fujian to test the situation of shoemaking companies. At the time, they claimed that Hongkong's capital market was very interested in shoe companies in the mainland."

Fujian local market people told reporters.

However, this year's Fujian shoe enterprises listing plan is not smooth.

"One of the reasons is that the consumer concept stocks that have been listed in Hongkong are not performing well. On the other hand, the immature market operation and financial management capabilities of Fujian shoe enterprises have made the capital market more alert."

A Jinjiang footwear industry official, who did not want to be named, said.

According to the personage, some family shoe enterprises are quick to go public. They are willing to make false sales figures, assets and liabilities data, invoices and other financial information.

The Fujian footwear industry association also admitted that at present, some Fujian shoe enterprises have not clear ownership structure and standardized management capabilities, and the timing of listing is not mature.

However, Zhou Xingzheng, a researcher with Southwest Securities and Hong Kong stock, said that the unsmooth listing process of XTEP and other domestic demand enterprises is not a case of Hongkong's capital market.

In addition, some experts pointed out that although the mainland shoe enterprises are being affected by the appreciation of the renminbi and the reduction of "external demand" in the export trade, the shoe processing enterprises which are operated by OEM will face a shuffle, but the brand attacking the mainland market is expected to win.