New IPOs welcome news for Hong Kong

Two mainland Chinese companies intend to raise some US$1.1 billion by making their initial public offerings in Hong Kong.

Due to IPO are Zhengzhou Coal Mining Machinery Group Company and Shanghai Fosun Pharmaceutical (Group) Company.

Analysts said the renewed interest in Hong Kong might signal the drought in new listings in the city may be coming to an end. They expect the planned offerings to restore some life to the city's IPO market that has fallen to the third favorite IPO destination this year from first from 2008 to 2010.

Zhengzhou Coal, which is based in Henan province, plans to raise some US$500 million from the IPO. It will list on the Hong Kong stock exchange on Oct. 9. Shanghai Fosun plans to launch its IPO in September and to raise some US$600 million, according to sources.