Tsingtao celebrates stock rise

Chinese brewery Tsingtao is celebrating its stock rising 24-fold since its debut on the Hong Kong Stock Exchange 30 years ago.

According to the South China Morning Post, the brewery’s stock grew from a starting point of HK$2.80 to reaching HK$71.25 last week, making it a HK$127.76 billion behemoth.

Analytics from Bloomberg have additionally pointed out that if each of the dividends Tsingtao has paid out since 1993 were reinvested in the stock, the total return would be 42 times the original sum.

Putting this into context, this means that in 1993 paying HK$5,600 for one board lot (2,000 shares) of Tsingtao could now be equivalent to HK$117,440.

Speaking in reports about the brewery’s success with its initial public offering (IPO), Kenny Ng Lai-yin, a strategist at Everbright Securities International recalled how it “reflected the rapid development of the mainland’s economy over the past 30 years, and the thriving growth of Hong Kong’s financial market”.

The so-called H-share listings over the past 30 yearsHave benefitted many individuals and, since Tsingtao’s IPO, 389 such listings have reportedly raised a total of HK$2.08 trillion.

“H shares” originally referred to the Hong Kong-listed shares of mainland Chinese companies owned or backed by the state, the local reports explained.

Charles Lee Yeh-kwong, said during the recent celebrations: “Hong Kong is among the top four IPO markets in the world in the past 14 years, mainly due to the listings of mainland companies.”

He added: “The listing reform forced all mainland firms to improve their management and disclosure. It is vital to the development of the Chinese economy.”

Last year, db flagged how China’s beer industry was poised for big gains, anticipated that it was set to emerge from the pandemic stronger, folowing reports revealing its resurgence.

Tsingtao Brewery was created by German and British merchants in Qingdao, Shandong province, in 1903 as Germania-Brauerei Tsingtao.