Business
High Interest Rates Halt Qifa’s Moscow IPO: Chinese Digital Platform Delays $18.9m Listing Amidst Challenging Stock Exchange Environment
Qifa, a Chinese digital platform specializing in Russia-China trade, postpones its Moscow IPO amid rising interest rates. The company initially intended to generate $18.9 million from its Moscow stock market debut.
On Tuesday, Sun announced that the initial plan was to launch the IPO in Moscow worth 1.7 billion roubles (US$18.9 million) in August, intending to sell approximately 20% of Qifa's shares.
"Currently, we're transitioning into October or November. This period follows a significant increase in the principal interest rate and coincides with a challenging phase in the stock market," Sun explained to Reuters during a break at the Eastern Economic Forum in Vladivostok, Russia. "Therefore, thinking about our potential investors, we've decided to delay it."
Qifa reported that its earnings soared by 75 percent annually, reaching 5.7 billion roubles in 2023. The majority of this income came from the sale of consumer items like clothing and footwear.
In July, the Central Bank of Russia increased its primary interest rate by two percentage points, reaching 18 percent. This is the most significant rate in over two years. The bank committed to persist with this stringent approach until the inflation levels in the overheated economy are reduced.
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