Recently, JINYAN KAOLIN, a subsidiary of Anhui Huaibei Mining Group, successfully listed on the main board of the Hong Kong Stock Exchange, becoming the first enterprise in Anhui Province to achieve a "New Third Board + H-share" dual listing. Against the backdrop of profound changes in capital markets, JINYAN KAOLIN's debut as the first energy-saving and refractory materials-focused H-share company from northern Anhui not only enhances Huaibei Mining Group's asset securitization rate and industrial structure but also highlights the region's growing activity in capital markets.

According to Wind data, northern Anhui currently hosts 20 A-share and 2 H-share listed companies, including Gujing Distillery, COFCO Biochemical, and Huaibei Mining Group. The 15th Five-Year Plan emphasizes expanding equity and bond financing while steadily developing futures, derivatives, and asset securitization. Revitalizing northern Anhui requires improving both the quantity and quality of listed companies, leveraging capital markets to foster a virtuous cycle connecting technology, industry, and finance.

"Entering the fast lane of international capital markets marks a solid step toward global leadership," said Zhang Kuang, Chairman of JINYAN KAOLIN, during the listing ceremony. Established in 2012, the company specializes in mining, processing, and selling coal-series kaolin, a key material for precision casting and refractories used in aviation, automotive, and metallurgy sectors.

Why choose a Hong Kong listing? Supportive policies for resource-based industrial transformation and growing investor interest in new materials created a favorable window. Guoyuan Securities played a pivotal role in facilitating the IPO through its subsidiary Guoyuan International, leveraging Hong Kong's financial hub advantages to navigate regulatory approvals.

Preparations began years earlier: JINYAN KAOLIN completed its joint-stock restructuring in June 2022, listed on the New Third Board that November, and entered the innovation tier by June 2023. "In September 2024, we initiated the H-share listing process, collaborating with global investment banks and advisors to build internationally compliant governance frameworks," Zhang noted. Huaibei Mining Group provided strategic support, treating the listing as part of its integrated capital operation strategy.

This IPO sets a precedent for resource firms pursuing "domestic compliance with overseas financing," potentially boosting the kaolin industry's global pricing power and transition from raw material suppliers to solution providers, said Lin Fei, Vice President of Anhui Development Strategy Research Association. Hong Kong's mature cyclical sector investors, who prioritize resource reserves and cash flow over growth metrics, offer greater acceptance for such businesses.

However, post-listing challenges include commodity price volatility, liquidity risks for small-cap H-shares, ESG compliance pressures, and valuation fluctuations. Lin suggests sustaining appeal through technological upgrades, optimized product mixes, and robust ESG systems while improving investor relations and disclosure quality.

For firms eyeing global markets, Lin recommends assessing jurisdictional risks, establishing governance foundations via domestic listings like the New Third Board, and aligning listing locations with industry characteristics. Regulators should enhance cross-border coordination to reduce compliance burdens and facilitate RMB settlements.

Huaibei Mining Group exemplifies northern Anhui's transformation—converting coal into products like anhydrous alcohol and photovoltaic-grade hydrogen. Since its 2018 Shanghai listing, the group has raised ¥8.8 billion, achieving over 90% asset securitization. Anhui's "Welcome Pine Action" initiative further promotes listings through talent and capital inflows, with northern Anhui now focusing on four industrial clusters: NEVs, renewables, advanced materials, and green food.

"Northern Anhui's revitalization is vital for provincial development. Listed firms should spearhead governance standards, attracting investments while using capital to expand markets and upgrade industries," Lin concluded.