Adam Roseman of ARC China recently discussed Prada’s initial public offering in Hong Kong in the company’s newsletter. He explained that Prada SpA hopes to raise as much as $2.6 billion in the offering.

According to Scilla Huang Sun, equity head at Swiss & Global Asset Management, on average, Chinese consumer companies “have a higher valuation that consumer companies elsewhere. But that’s also due probably to their higher growth potential. Also, all these Chinese companies have almost 100 percent exposure to the Chinese market, whereas luxury companies including Prada have only a partial exposure.”