Tim Fu, deputy managing director of corporate finance at BNP Prime Peregrine, said the firm had been involved in more than a dozen fund-raising deals since its creation in February.

"We continue to work on IPOs, as a financial advisor on mergers and acquisitions as well as other innovative deals with local companies, H- or B-share companies," Fu said.

H-share companies are mainland-based Chinese enterprises listed in Hong Kong. B shares are stocks of China-based companies listed on the Shanghai or Shenzhen stock exchanges and earmarked for foreign investors only.

Corporate finance managing director Alex Ko said BNP Prime Peregrine did not have a specific strategy in the initial public offering market. "We are monitoring the market situation and trying to do abetter job in preliminary preparation work."

Both Fu and Ko are former employees of Peregrine Investments Holdings Ltd which was forced into liquidation in January after Asia's financial crisis dealt it a fatal blow.

French bank Banque Nationale De Paris acquired the Hong Kong investment bank's flagship Greater China Broking and Corporate Finance operations while Spain's Banco Santander's investment banking division took on the core Asia equities team of Peregrine Securities International Ltd.

"We are following the Peregrine style, the Peregrine strategy, in doing our work," Fu said. "We still have the same group of people, the same group of clients. We still have the same strategy as before, before Peregrine collapsed."

BNP Prime Peregrine did its first capital-raising deal in February, helping International Bank of Asia Ltd to raise about HK$800 million in a rights issue.

The brokerage was involved in the March takeover of Hansom Holdings Ltd by China National Tobacco Corp and the Yunnanprovincial government-owned South Hong Investment Ltd.

It acted as financial advisor to Shum Yip Investments Ltd on the purchase of a stake in a power plant and a warehouse operator in China's Shenzhen for 357.6 million yuan last month.

BNP Prime Peregrine was also the financial advisor of First Tractor Co Ltd in an asset acquisition deal, and of China Shipping Development Co Ltd in a HK$363 million share placement.

Most recently, BNP Prime Peregrine was involved in the placement by Kumagai Gumi (Hong Kong) Ltd of new shares to China Everbright International Ltd.

"Our strategy has not changed much. The market is relatively volatile and quite difficult at the moment. We will work hard on maintaining Hong Kong's status as a market or medium for Chinese companies to raise capital," Fu said.

"We are still in the industry." Peregrine was mandated to sponsor several floats of HongKong-based red chips before going into bankruptcy. "We will expect to see some IPOs from our house go to the market in thesecond half," Fu said. The new issues may include local companies, H shares and B shares and red chips, he said. "When overall market sentiment has improved and stabilised, the number of IPOs will increase," added Ko. "We believe there are windows in the market for new listings this year. We have to wait for appropriate opportunities."

Ko said some big issues might come up in the second half of the year. Companies priced reasonably with good growth prospects and a niche business or market would attract interest, he said.