Long-suffering U.S.- and Hong Kong-listed Chinese companies are taking advantage of recent positive sentiment to raise billions of dollars, bringing new meaning to the old adage “make hay while the sun shines.” This month alone, the group has raised more than $2 billion in at least eight deals, led by a $580 million fundraising by data center operator GDS (GDS.US; 9698.HK).
The amount almost certainly would be even larger if not for the long Lunar New Year holiday, which saw mainland China and Hong Kong close for most or all of this week. Accordingly, we can probably expect to see more similar fundraising once companies get back to work, as they rush to strike while the iron is hot.
The positive sentiment is also sparking a new wave of Chinese IPOs in New York, which is also likely to accelerate with the return from the holiday. Two major new Chinese IPOs have debuted since late 2022, ending a drought of more than a year. And another application filed last week by autonomous driving technology firm Hesai Group could become the biggest New York listing from the group since mid-2021, potentially raising up to $300 million.