The rapidly growing renewable energy market is moving into overdrive as China Suntien Green Energy becomes the fourth Chinese clean-energy company to list on the Hong Kong Stock Exchange in a little over two weeks.

China Suntien, which operates both wind power and natural gas distribution businesses in China, is the clean energy arm of Hebei Construction Group, the state-owned investment arm of the Hebei provincial government. Its US$370m listing follows that of China Ming Yang Wind Power Group (US$350m, 1 Oct 2010), Trony Solar (US$223m, 7 Oct 2010) and China’s second largest wind turbine maker, Xinjiang Goldwind Science and Technology (US$917m, 2 Oct 2010) on the Hong Kong market.

China Suntien was advised by Latham & Watkins with additional input from PRC firm Jia Yuan. The underwriters – Macquarie Bank and Morgan Stanley – were advised by Clifford Chance and local advice was provided by Grandall.

Trony Solar’s debut on the HKSE, meanwhile, was advised by Simpson Thacher, Orrick, Walkers and Jingtian & Goncheng as issuer’s counsels; and Latham & Watkins and Commerce & Finance advised the underwriters.

China Datang Corp, the country’s second largest power producer also has plans to float shares of its renewable energy unit in a Hong Kong IPO – some sources say as early as December 2010. And top power producer China Huaneng’s renewable energy unit, Huaneng New Energy Industrial, plans to raise US$1bn to US$1.5bn in a Hong Kong initial public offer in October.

China has been reported to be the world’s largest market for wind power, after it more than doubled its wind generation capacity last year.

Fears of overcapacity had prompted the Chinese government to order an unofficial freeze on some initial public share offerings in the renewable energy sector in June this year, holding approval for certain IPOs. IPO affected by the freeze earlier this year included wind equipment manufacturers and polysilicon suppliers.ALB

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