China Tourism seeks $2-3 billion Hong Kong listing – sources

A trader walks on the trading floor during daytime trading on the Hong Kong Stock Exchange in Hong Kong, China, September 26, 2016. The photo was taken on September 26, 2016. REUTERS/Bobby Yip/Files

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HONG KONG, June 30 (Reuters) – China Tourism Group Duty Free Corp Ltd (601888.SS) is set to raise $2-3 billion through a secondary listing in Hong Kong, two people with direct knowledge of the matter told Reuters.

The company filed updated paperwork on the Hong Kong Stock Exchange on Thursday, making its second attempt in a year to list in the city.

Sources declined to name because the information was not public.

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China Tourism did not immediately respond to an email request for comment sent after business hours in China.

The filings did not specify the size or timing of the deal, but two sources said the company would be looking to raise $2-3 billion.

The deal could take place as early as the third quarter of 2022, they added.

The company’s shares rose 6.3% on Thursday, hitting their highest close since November.

Last year, China Tourism intended to raise about $6 billion in Hong Kong, but delayed the deal in December due to the impact of the pandemic and volatility in financial markets.

The company has more than 200 duty-free shops in China, Hong Kong, Macau and Cambodia, according to documents.

China Tourism said its business has been heavily impacted by the pandemic in mainland China and travel restrictions.

But it says the impact on revenues has been reduced by changes in rules put in place to boost domestic consumption in an effort to revive the Chinese economy.

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Reporting by Scott Murdoch in Hong Kong Edited by Mark Potter

Our Standards: Thomson Reuters Trust Principles.


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