(28-02-2014, 07:14 PM)momoeagle Wrote: [ -> ]HK investors probably think
1) Issued by SHK! Must be safe!
2) listed in Singapore! Super strict country! Must be safe too!
Furthermore it was packaged as ABS. This might "trick" some to think it's safe.
But what's the asset to back it up? Mr Lin's shares in Eratat. Hardly a good backing.
None of these are new info or conclusion and has been brought up by different parties for quite some time.
SHK Finance unit is looking to list... will be interesting to see their books which they said is mostly consumer
Sun Hung Kai Said to Pick Banks for $400 Million Finance IPO (1)
2014-03-21 10:57:02.847 GMT
(Updates with Standard Chartered sale in fourth
paragraph.)
By Fox Hu and Jonathan Browning
March 21 (Bloomberg) -- Sun Hung Kai & Co., a Hong Kong-
based brokerage, picked JPMorgan Chase & Co., Morgan Stanley and
UBS AG to work on an initial public offering of its consumer-
finance unit, said people with knowledge of the matter.
A listing of United Asia Finance Ltd. in the city may raise
about $400 million in the second half, the people said, asking
not to be identified because the information is private. Sun
Hung Kai owns 58.1 percent of the business.
Sun Hung Kai, which is backed by private equity firm CVC
Capital Partners Ltd., joins Standard Chartered Plc in seeking
to pare exposure to consumer-finance businesses in Hong Kong. UA
Finance offers products including second mortgages and “no-
show” personal loans that don’t require any identity documents
to be submitted, its website shows.
Standard Chartered, the U.K. bank that gets about three-
quarters of earnings from Asia, is seeking buyers for its Hong
Kong consumer finance business PrimeCredit Ltd., a person with
knowledge of the matter said Feb. 19.
UA Finance’s board is discussing a potential listing, Sun
Hung Kai said in a statement yesterday. The plan “remains at a
preliminary stage,” the company said, without providing further
details.
UA Finance expanded its network in China to 105 branches at
the end of 2013 from 79 a year earlier. The value of outstanding
loans jumped 21 percent last year to more than HK$10 billion
($1.3 billion), according to a statement this month.
The proposed listing of UA Finance is still at an early
stage and the board hasn’t approved the plan yet, Sun Hung Kai
said in an e-mailed statement today. It declined to comment
further.
London-based CVC Capital agreed to invest HK$2.14 billion
in Sun Hung Kai in 2010 and owns 16.1 percent of the company,
data compiled by Bloomberg show.