Society

The island’s IPO market has lost some gloss – but big firms still see it as a passport to China

THERE IS a strong scent of luxury in the Hong Kong stock market these days, as global brands queue to list on the Hang Seng, keen to take advantage of the territory’s proximity to the booming China market.

Hong Kong’s shopping precincts have long played host to premium names such as Prada and Samsonite; now these luxury firms are filing initial public offerings (IPOs) here.

Hong Kong was the world’s biggest IPO market last year, raising €40 billion from 87 listings.

As China prepares to mark the 90th anniversary of its Communist Party on July 1, there are signs of a new ideological struggle over former leader Mao Zedong's legacy.

The conflict is being played out online amid a backdrop of heightened nostalgia for the revolutionary days, as a young leftist takes on an elderly economist who dared to publicly criticize the founder of the People's Republic of China.

It's been nearly 35 years since the death of Chairman Mao, and the official verdict is that Mao was 70 percent right and 30 percent wrong. That assessment is controversial, given the tens of millions of deaths Mao caused through economic mismanagement and political terror.

The heavy rain that hit Beijing on Thursday afternoon has caused flood in low-lying areas and disrupted traffic.

China's growth is slowing under the weight of Beijing's anti-inflation campaign and weaker global demand, but any investors betting on a hard landing would be underestimating the resilience of the world's second-largest economy.

China's relentless urbanization continue to drive expansion even as Beijing seeks to check unfettered investment by growth-obsessed local authorities, while stronger domestic consumption is providing a firmer cushion against external shocks.

China bears may have been emboldened on Thursday by a purchasing managers' survey showing growth in the factory sector nearly stalled in June as new export orders fell.

But skeptics who are expecting an abrupt economic slowdown may have miscalculated Beijing's resolve to act quickly if needed to revive growth, especially if inflation eases later this year as expected, reducing the need for fresh monetary tightening measures, analysts say.