Vale gets approval to list in Hong Kong: source

By Denny Thomas

HONG KONG (BestGrowthStock) – Brazilian miner Vale SA (VALE5.SA: ) (VALE.N: ) has received approval to list on the Hong Kong stock exchange, a source told Reuters on Thursday, bringing the global miner closer to its biggest customer, China.

Hong Kong Stock Exchanges and Clearing Ltd approved Vale’s application at a scheduled meeting and gave permission for Vale’s depository receipts to be traded on Hong Kong stock exchange, the source said.

Vale, which will become the first depository receipt to trade in Hong Kong, is not raising any money through the listing.

Vale’s listing is a coup for the exchange and some bankers expect the approval to pave way for more global companies to issue depository receipts in Hong Kong and access the deep pool of liquidity available in Asia.

“The listing is scheduled to early December,” said the source, who was not authorized to speak about the matter as the decision was not public yet.

A Vale spokeswoman said the company had received no official confirmation of the listing approval in Hong Kong and could not comment on the issue. A Hong Kong stock exchange spokesman declined to comment.

An increasing number of global companies are seeking to list in Hong Kong, which is seen as a gateway to China.

A Hong Kong listing would provide Vale direct exposure to Asian capital markets. China, the world’s biggest consumer of iron ore, accounts for more than a third of Vale’s revenues.

Hong Kong has been a hotbed for IPOs this year, with $48.7 billion raised through initial public offerings. Some of the high profile names that were admitted to the Hong Kong stock exchange this year include, Russian aluminum company RUSAL (0486.HK: ) and skin care products retailer L’Occitane (0973.HK: ).

J.P. Morgan (JPM.N: ) is the sole sponsor for Vale’s Hong Kong Depository Receipts (HDRs) and the bank will arrange for some Vale shares listed on overseas exchanges to be transferred to Hong Kong in the form of receipts.

Vale’s shares and depository receipts are already traded in New York, Sao Paulo, Paris Euronext among others. A Hong Kong listing will enable its shares to be traded across more timezones.

Vale’s bigger rivals BHP Billiton Ltd (BHP.AX: ) (BLT.L: ) and Rio Tinto Ltd (RIO.AX: ) (RIO.L: ) are listed on Australia stock exchange.

(Additional reporting by Alison Leung in Hong Kong and Denise Luna in Rio de Janeiro. Editing by Jane Merriman)

Vale gets approval to list in Hong Kong: source