This article only represents the author's own views.
When cloud communications services provider Beijing Xunzhong Communication Technology Co. filed its Hong Kong IPO application late last month, it listed the sole sponsor as DBS Asia Capital, the investment banking arm of Singapore’s largest bank. Then last week, it quietly notified the Hong Kong Stock Exchange of a second lead sponsor, China Securities (International) Corp., backed by domestic financial powerhouses Central Huijin and Citic.
So, what’s so unusual about that? Normally, Hong Kong IPOs by Chinese companies have at least one domestic underwriter to sell to domestic investors. Thus, the addition of a well-connected player like China Securities is set to address that market, and hints that the offering could be relatively large.