Morgan Stanley shines in subdued Chinese market
An example of Morgan Stanley’s ability to shine in an increasingly difficult market is the Central China Real Estate IPO, which raised HK$1.37 billion ($176 million) in a Hong Kong listing in May. It remains the only Hong Kong real estate IPO to price in 2008. Two other real estate flotations, for Guangzhou-based developers, had already been pulled in Hong Kong earlier in the year, for Evergrande Real Estate and Changsheng China Property. Central China’s success in getting away was even welcomed by rivals, delighted to see a sign of confidence in the markets. It went at the bottom of its pricing range, at a hefty 51% discount to 2008 estimated NAV. However, the book was well covered and the deal got done. A key achievement in getting the deal away was the appointment of a cornerstone investor, Jiao Shuge, managing director of private investment firm CDH China Fund.
