Sun Art's Strong Debut Reflects Investor Appetite for EM-based Consumer Assets

China's leading hypermarket retailer Sun Art Retail Group, which is a joint venture between Taiwan conglomerate Ruentex Group and French retailer Groupe Auchan, recorded a 47% jump in its share price on its trading debut as investors look to ride on the country's burgeoning domestic demand story. This also marks the strongest trading debut in 2011 for a Hong Kong initial public offering (IPO) worth more than US$500mn, according to Bloomberg, demonstrating a strong investor appetite for emerging market (EM)-based consumer assets. With a nationwide presence across the Chinese hypermarket sector, Sun Art is an exciting growth prospect, and it is of little surprise that the retailer has caught the attention of investors.

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