Linklaters advised the joint lead managers on China Hongqiao Group’s RMB 10.2bn US dollar-settled zero-coupon convertible bonds due 2027 and concurrent share repurchase by the company. This follows the company’s US dollar convertible bond issuance in 2025 which was the first-ever convertible bond transaction with a concurrent share repurchase by a company with a primary listing on the Hong Kong Stock Exchange (HKEX).
The concurrent share repurchase, as part of the overall concurrent equity offering, is expected to facilitate the initial hedges by investors who desire to hedge their investments in the bonds, facilitate better pricing terms in respect of the bonds and mitigate negative share price impact on the shares, thereby greatly enhancing the attractiveness of the convertible bond product to issuers and investors alike. Waivers from both the HKEX and the Securities and Futures Commission of Hong Kong were obtained from strict compliance with certain HKEX listing rules and the Codes on Takeovers and Mergers and Share Buy-backs. A number of issuers with a primary listing on the HKEX have adopted similar structures in the past year, following the landmark convertible bond issuance and concurrent share repurchase.
The Linklaters team was led by capital markets partner Taiki Ki, with support from solicitor Jun Tang.
With over 50 years’ on-the-ground presence in Hong Kong SAR and the wider Asia region, Linklaters provides clients with high-quality, comprehensive legal support across international capital markets transactions. The firm has advised on a number of high-profile equity-linked transactions in Asia Pacific in recent years, including landmark exchangeable and convertible bond offerings by Chinese issuers and complex concurrent share repurchase structures.
