23 YEARS OF PORDA HAVAS AND THE HONG KONG MARKET: FROM NEWS STORIES TO CAPITAL STORIES
Latest Update:
9 th October, 2020

On July 15, 1993, the trading floor of the Hong Kong Stock Exchange was crowded with people, with each guest holding a bottle of Tsingtao beer.  

This is the listing of Tsingtao beer on the Hong Kong Stock Exchange, and also the beginning of a wave of mainland state-owned enterprises to list in Hong Kong.  When Li Yiguang wrote his letter to zhu Rongji, China's premier at the time, he probably would not have guessed that it was a flood of mainland state-owned enterprises that underpinned the multiyear boom in Hong Kong's capital markets to become the world's largest IPO market.  

In the following years, The capital market of Hong Kong continued to reform, connecting with the mainland stock market, allowing the listing of enterprises with the same share and different rights and unprofitable biopharmaceutical companies, allowing more diversified investors, attracting fresh blood from new economy enterprises and bringing overseas Chinese stocks back home.  

As listed companies become more diversified and investors become more diversified, financial pr, which Bridges the communication between the two sides, is becoming more and more important. Therefore, the financial PR industry is particularly developed in Hong Kong market.  Bda Horwath is one of the oldest financial links.  

Porda was founded in the year of Hong Kong's handover to China by zhang Liren, a veteran financial journalist who had just published his first book, Tycoon From Nothing.  This new book records the famous mainland entrepreneurs interviewed by Zhang Liren, including liu Yonghao, Zong Qinghou and other industry leaders. It is this understanding of mainland entrepreneurs that gives Zhang an in-depth understanding and resonance when helping listed companies communicate with investors.  

Thirteen years later, Zhang Liren led BDA to form a strategic alliance with Havas Group, Europe's largest pr advertising multimedia group. Havas Group became a shareholder of BDA, and the two professional teams at home and abroad seamlessly served mainland enterprises to go public and overseas enterprises to go public in Hong Kong.  

Porda is the only one in the field of finance and customs in Hong Kong in this kind of cross-regional cooperation. The willingness to sell shares at that time contributed to the all-round development of Boda's internationalization today.  

At present, Porda has served nearly 700 listed companies, accounting for about one-third of the total number of listed companies in Hong Kong. Among them, more than 20 customers have a market value of over 100 billion yuan. According to the total market value of 40.4 trillion Hong Kong stocks, Porda's top customers alone have occupied many market shares.  

Write a news story  

In 1992, while working in financial media in Hong Kong, Zhang liren developed a keen interest in private enterprises and entrepreneurs on the mainland.  

From Liu Yonghao of New Hope Group to Zong Qinghou of Wahaha group and Mou Zhongqi of Nande Group, Zhang Liren has interviewed many of the first-generation private entrepreneurs in mainland China.  

"I was involved in a large-scale interview on Hong Kong's return to China in 1997. In the seven years before the return, Hong Kong went through ups and downs, and the mainland was also in a very turbulent historical period of development."  

The empty-handed tycoon is zhang Liren's first and direct impression of these entrepreneurs.  

"These entrepreneurs really became tycoons from nothing. The most successful at that time were Liu Yonghao, Zong Qinghou, Zhang Guoxi and Mou Zhongqi, who for various reasons gained initial accumulation in the early stage and gradually grew stronger."  

Zhang Liren clearly remember, in the summer of 1994 interview liu yonghao, at that time there has been a into liu2 zong3 driving a very luxurious santana, in that time to pick him up to chengdu suburban home, where Zhang Liren saw a statue of liu mother, she was a plain middle school teacher, is also the most profound influence on liu yonghao idea in dealing with people.  

Today, Liu Yonghao's New Hope Group has achieved diversified and international development with its business spanning most industries from feed, food, education, energy to real estate.  

Watching the rise of great companies and the rise of great entrepreneurs can be addictive.  For closer observation and participation, 97 years has not been over, Zhang Liren resolutely resigned from the media, founded the bo da international financial and economic public relations limited company, from writing news stories to record and participate in the capital story, Zhang Liren also from the media transformation into his original observation object -- entrepreneur.  

"When I was a journalist, I had to consider very different issues. Every time I did an interview, I first looked at the news, story and representativeness of the information."  Zhang Liren recalls his media experience in those days and is still very familiar with the techniques and techniques of writing stories.  

"Caiguan also wants to sell a story, but what you sell is not a news story, not just a good story. What you sell is a capital story, a stock. You want to make people feel that what this company does is valuable to society and others, and it will definitely have a good development in the future.  This is the fundamental difference between a news story and a capital story."  

Continue to write the capital story  

"Create value for your story."  This is the most striking sentence on Porda HAVAS's official website homepage.  

According to Zhang liren, the biggest challenge for financial pr firms is to help the [proposed] public company gain recognition from investors and increase its value.  "At present, some enterprises can easily oversubscribe for their IPOS in Hong Kong by 1,000 to 2,000 times. The recently listed Pejia Medical frozen its capital of more than 260 billion Hong Kong dollars, but some enterprises can hardly even subscribe to the full amount. Behind this is whether the capital stories of enterprises are well told and whether investors recognize them."  

"Since the beginning of the past few years, the Hong Kong Stock Exchange has required companies to submit their A1 listing applications in advance of the hearing. This means that companies have to disclose their prospectuses three months in advance and accept the supervision and scrutiny of the media, the public and investors three months in advance. This is undoubtedly a great challenge.  In accordance with the policy changes, we have advanced the participation time, sorted out public information and communication strategies for enterprises, and formulated crisis response plans.  In addition to the prospectus, we should also do some emotional publicity to arouse market heat and attract public attention."  

Zhang liren has led BDA Horwath in the Hong Kong capital market for 23 years, and has a profound memory of the changes and growth process of Hong Kong stocks.  

"When the Hong Kong stock market began to flourish in the early 1990s, there was only one financial pr company in the market, which later withdrew from the market because its founder emigrated."  

"In the mid-1990s, the Hong Kong stock market ushered in A wave of H-share and red-chip listings. State-owned enterprises represented by Tsingtao Beer were listed in Hong Kong stock market one after another, establishing A+H structure.  Pansy Ho, who was the daughter of Stanley Ho at the time, was very active in TPR, which also went out of business for personal reasons, and the people who came out of TPR started IPR, which was later acquired by Ogilvy and Mather ten years ago."  

Speaking of the history of Hong Kong stock market and financial public relations, Zhang Liren is full of facts. "During the same period, only Porda HAVAS and Vertical Finance have two financial relations, which are also the oldest financial relations."  

"In November 1999, in order to foster small and promising companies and innovative technology companies, The GEM was established in Hong Kong, which is similar to the NASDAQ in the US. Companies only need to operate for two years and are not required to make profits before they can be listed on the GEM.  This year, when the tech (Internet) market is in its heyday, gem and Tech stocks compete for funds, the Hong Kong stock market is at its peak, there was a grand situation of open subscription overnight."  

"Around 2015, large state-owned enterprises were listed in Hong Kong, such as CNR, China Huarong, and Guangzhou Automobile."  

In that year, the capital market boom, for Zhang Liren, "it can be said that Porda caught up with several rounds of dividends in the Hong Kong stock market, so we also developed."  

Market changes in development  

Market bull bear conversion, economic ups and downs, and Hong Kong investors have experienced several degrees of wind and rain, several financial crises failed to beat Porda, but zhang Liren led Porda constantly seeking change, looking for new possibilities.  "Hong Kong's capital market has been active for more than 30 years, and there is a high probability that such activity will continue. Crises are always short-term, and each round of crisis is followed by a great boom in the industry."  

"Porda has gone through several financial storms, but we have not fallen. Instead, we have developed further because of our strong ability to accept new things."  

A decade ago, Porda, like other financial PR firms, was very local, but in 2009, a discovery changed Zhang's mindset and strategy.  "I met an enterprise director on the plane, who was holding a seminar on China's State-owned Assets Supervision and Administration Commission (SASAC) calling on mainland enterprises to go global, and I started to discuss it with him."  After talking with entrepreneurs he met by chance, Zhang Liren made a judgment: "As mainland enterprises go overseas, Hong Kong and even the global financial market will be greatly affected in the future. Chinese enterprises will go to Hong Kong, the United States and Europe for listing."  

After his return, Zhang liren began to adjust bDA Horwath's development strategy, seeking a breakthrough in internationalization.  "At that time, opportunities always come to you when you want to do something. I met the management of Havas, the largest PR advertising multimedia group in Europe, at a party. After a year of communication and field visit, they officially invested in Porda."  

"Because of our limited resources, it is impractical to set up overseas branches. Through this kind of strategic cooperation between peers, we have our own resources and teams overseas, so that whether the mainland enterprises go out or the overseas enterprises bring in, the two teams can easily cope with the situation."  

Zhang Liren 2016 service is the most impressive boc aircraft leasing company public, this is a international aviation leasing company in Singapore, management are American, British, not Chinese, but it is the bank of China holdings, which requires an international financial pr team to service, must communicate fluently and both sides.  

"If you look at the whole industry, only a model like ours can do that.  We are the only financial pr group in Hong Kong that is both locally rooted and works closely with our international peers."  

The degree of maturity of the financial market determines the degree of IPO activity. In the overseas market, the number of IPOS in The European stock market except the UK is only in single digits every year. Although the Hong Kong market is judged to be active for a long time in the future, Zhang Liren is still preparing for a rainy day and constantly strengthening the service expansion of Porda after the listing of enterprises.  

Although it has been in the leading position in the industry, the current ecology and volume of Porda is by no means the end of zhang Liren's plan.  

Latest Update:
9 th October, 2020