The Hong Kong initial public offering (IPO) of China's largest maker of transmission equipment for wind turbines, China High-Speed Transmission Equipment, was 692 times oversubscribed and received subscriptions worth HK$148 billion for its Hong Kong offering alone. Upon hitting the market on July 4 2007, the stock price nearly doubled within the day, closing at HK$14 per share.

The stock was in such high demand that its offering price was nearly 50 times its projected earnings for 2007. The company supplies wind power generation firms, marine vessels and railways, and analysts say that the lack of similar companies listed in Hong Kong have allowed it to command a premium price. The company expects its 2007 net profit to more than double to Rmb180 million (US$23.8 million), up from Rmb85.6 million last year.

China is the number-one producer of off-grid wind turbines, and has incorporated wind energy into its energy policy following Europe's lead. Subsidies there have helped to develop the technology, and wind energy now costs 80% less than it did 20 years ago.

The nation has set targets to increase renewable energy use from the present 10% to 20% of total energy consumption by 2020, in order to meet increasing energy demands and reduce the greenhouse effect. "Wind power is a fast growing global business, and China High Speed supplies many of the world's largest manufacturers of wind turbines," says Clifford Chance's corporate partner Amy Lo.

Clifford Chance advised Morgan Stanley Asia on Hong Kong and US law, while Zhong Lun Law Firm advised the underwriters on PRC law. Charltons advised the issuer on Hong Kong law, while Debevoise & Plimpton advised on US law and Jingtian & Gongcheng advised on PRC law. Maples & Calder advised on Cayman Islands law.