Tianhe Chemicals is expected to price Hong Kong's fourth-largest initial public offering of the year next Thursday and could be the first major deal to take advantage of the recent improvement in sentiment towards Chinese stocks.
The Hang Seng China Enterprises Index, which tracks the performance of Chinese shares listed in Hong Kong, has gained about 7% in the past month, while Saturday's better-than-expected manufacturing data suggests China's economic slowdown is stabilising.
For investors, Tianhe could mark a favourable confluence between improved market conditions and a realistic valuation, since the issuer had originally wanted to raise a higher amount -- about $1 billion -- before market...
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