What does Li Jiachengs second listing of the British listing of the Yangtze Rive

The Yangtze River Infrastructure Group (Changjian), a subsidiary of the Hong Kong Rich Li Ka -shing Family, was listed on Monday (August 19) on Monday (August 19) on Monday (August 19) to buy and sell on the London Stock Exchange in the United Kingdom.This move has aroused high attention from the outside world, which is considered the risk of further investment in the international market and reducing investment in China and Hong Kong.

Regarding the speculation of the outside world, the chairman of the group Li Zezheng said in the mid -term performance meeting of Changshi Group last week: "I dare not bet that the Hong Kong market is too bad. In the past history, it was wrong for who gambled in Hong Kong for a long time."At the analyst meeting, other companies in the department have not planned to go to London for the second time.

In the past ten years, the actions of the asset allocation of Li Ka -shing's group will attract the attention of mainland China and Hong Kong, including the selling assets of Hong Kong and China, and purchased the assets of Europe, especially the United Kingdom, in 2015. In 2015At the time, the official media's think tank issued a post on Li Jiacheng. Criticizing this as a "withdrawal of capital" has aroused widespread attention. At that time, Li Ka -shing rarely responded to the accusations.

Reverse information, as early as 2000, "Hutchison Whampoa" at that time had begun to invest in Europe. Subsequently, the profit proportion of profit in China and Hong Kong decreased year by year.The benefits have accounted for half of the total.When the Changhe Department continues to expand the map in the international market, the three major real estate developers in Hong Kong, Sun Hung Kai Real Estate, New World Development, and Hengshi Real Estate, and their asset distribution still remains in the China and Hong Kong markets.

"Buy half of the UK" Li family

The group of Li Jiacheng family completed the merger and reorganization in 2015, splitting into "Changhe" (Changjiang Hutchison Industrial) and "Changshi Group" (Changjiang Industrial Group).The core business includes ports and related services, retail, infrastructure and telecommunications, and the latter is mainly property and hotel assets.

The "Changjian", which goes to the London Stock Exchange this time, belongs to the infrastructure section of Changhe its own. It itself is also listed in Hong Kong.The scope of Changjian's business involves Britain, Europe, North America, Australia, China and Hong Kong.In 1996, the Yangtze River Infrastructure was established and started overseas markets since 1999.

Financial Times reported in July this year that at that time, Changjian considered a second listing on overseas stock exchanges such as London, and the timing chose to be considered a confidence in the British economy after the Labor government's overwhelming victory came to power.In fact, as early as 2018, Bloomberg had reported that Li Zezhen considered that Changchang was publicly listed in London.

In addition to the second listing, Changjian also announced the acquisition of Aviva Investors holding and operating in the British wind power asset portfolio in Aviva Investors. This is the third investment built in this year.In the first half of this year, Changjian has acquired PHOENIX Energy, a gas distribution network in North Ireland, and Powerlink Renewable Assets (formerly known as UU Solar).

In the past, the Li Jiacheng family's investment in different public utilities in the UK, including water, energy, railways, ports, chain pharmacies, etc. According to media reports, including about 25%of the power distribution market, nearly 30%of the natural gas supply market, about 7%of about 7%The water supply market, nearly 40%of the telecommunications market, nearly one -third of the British dock, more than 500,000 square meters of land resources, etc., the outside world claims to "buy half of the UK".Among them, the Yangtze River Infrastructure, which will go public in the UK this time, has contributed more than 90%of its profits to the business outside Asia. Among them, the British business accounted for about 50%of the profit contributions during the Changjian year.In its announcement of the second listing documents, in terms of geographical distribution, the United Kingdom is the largest market for Chang.

Li Zhaobo, a honorary teaching and research person in the Asia -Pacific Business Institute of Business School of the Chinese University of Hong Kong, said that Changjian chose to go to London for the second listing, which is also related to his business development.The market, so it is not surprising to raise funds in overseas listing itself.

According to the published documents, Changjian said that listing in London can benefit from shareholders in different regions, and at the same time help enhance the company's image.Li Zezhen said at the 2022 shareholders' meeting that Changjian's DNA was a global company.

Expansion of International Layout

Looking at the annual report of Changhe and its predecessor, Harmony, Hercho, and Herchu, the past 20 years of the Whampoa, in the past 20 years, according to the total income divided by the region, the earnings of the European and British markets have gradually increased since 2002, and it has gradually increased.41%of the income, 20%higher than the Hong Kong market and 8%of mainland China, have begun to see that it has begun to focus on the European market.Until the annual report in 2023 showed that the European market was 50%, 17%of which were the British market revenue, while Hong Kong and mainland China accounted for 8%and 6%, respectively, and only about 14%.

In other words, in the past 20 years, the business and profit of Changhe Department have become more and more heavy to the European and British markets.However, in 2022, the Group also sold assets in the UK. For example, the 5 BroadGate of London -level A Office Building, British, was also reported to sell UK Power Networks, UK Power Networks interested in selling British electricity assets in the same year.

Source, EPA

Hong Kong's three major real estate developers, Sun Hung Kai Real Estate, New World Development and Hengshi Real Estate, their business development is mainly in two places in the mainland and Hong Kong.Investigating the four major real estate developers in 2023, Sun Hung Kai's three core businesses are credit business, investment management, and fund management. Among them, 76.8%of the real estate positions, 60.6%in the public market holding of the public market is 60.6%.Mainland China.In terms of new world development, the property development and investment projects in the main business are concentrated in Greater China, especially the Guangdong -Hong Kong -Macao Greater Bay Area.As for Henderson Real Estate, its core business includes property development and property investment, and the property is mainly concentrated in Hong Kong and Mainland China.The Li Ka -shing family is responsible for the "Yangtze River Industry" of the property, hotel, and British tavern. In addition to Hong Kong and Mainland China, the source of income includes Britain and other regions.

Li Zhaobo said that because the business of the Changhe Department is more diversified and the regional distribution is also relatively international, it is different from the trend of the other three major real estate developers.On the other hand, he pointed out that the real estate industry industry is more regional -oriented, and the real estate industry in China and Hong Kong in the past is relatively easy to earn profitability. In addition, land revenue was one of the sources of income from the government, "(former) tooEasy to make money may make the developer have no sense of crisis. Li Sheng (Li Ka -shing) has a sense of crisis, which is also a risk management.

Hong Kong as an international financial market attraction reduction

The outside world has also made different speculations and interpretations on the launch of Changjian to London, such as the forecast and judgment of Changhe's economic prospects for the future of China and Hong Kong.Li Zhaobo believes that there is no need to be too pessimistic at present. For listed companies with overseas business overseas, listing overseas can increase the liquidity of stock transactions. Under the current downturn in the Hong Kong stock market, overseas second listings will be beneficial to companies to benefit companies.Attract more international investors.

"The current market value of Hong Kong's stock market and the investment of foreign funds is relatively low. If the transaction is low and the valuation and value of the stock market is low, it is not good for listed companies."The financial center, it is easy to attract foreign investors to note, "If the stock market value is low, the stock price will only be sluggish, which will not play real value for the company."

pastThere are also many Hong Kong and Chinese capital to choose to go public overseas, but the destinations choose more of the United States Stock Exchange. Li Zhaobo believes that the political environment facing the US listing in the United States may have unknown risks.On the other hand, the Li Ka -shing family had a deep relationship with the Britain in the past. Whether the Conservatives or Labor ruling, risks will be relatively small.