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Luxury boats are seen during the Monaco Yacht Show, one of the most prestigious pleasure boat shows in the world, highlighting hundreds of yachts for the luxury yachting industry in port of Monaco, September 22, 2021. REUTERS/Eric Gaillard Register now for FREE unlimited access to Reuters.comHONG KONG, March 31 (Reuters Breakingviews) – The answer to Ferretti (9638.HK) Chief Executive Alberto Galassi’s baffling confidence in its Hong Kong share sale lies in the South China Sea. The yacht maker is going public on Thursday despite seemingly ever worsening choppy waters: Western sanctions are hitting boat-loving Russian oligarchs; President Xi Jinping’s “common prosperity” drive has prompted the country’s own super-rich to lay low; and new Covid-19 outbreaks are depressing Chinese consumer spending and delaying initial public offerings. read more But China’s palm-tree-laden island province of Hainan is coming aboard. It’s the ultimate owner of entities buying a large chunk of the 70% of Ferretti’s IPO going to cornerstone investors. On Friday authorities there passed new rules to promote the yacht industry, part of their aim to boost tourism and pivot away from real estate.Ferretti priced its IPO on the lower end of the range, valuing it marginally higher than rival Sanlorenzo’s (SNL.MI) 10 times adjusted EBITDA multiple for the next 12 months. Hainan officials will be hoping it’s a seaworthy financial vessel. (By Yawen Chen)Register now for FREE unlimited access to Reuters.comFollow @Breakingviews on TwitterCapital Calls – More concise insights on global finance:Nielsen takes its reboot off air read more Singapore gets D.C. gold medal treatment read more Barclays’ blunder cements investment bank discount read more Gas tax cuts reward the wrong drivers read more Invesco wins battle, and half the war, at Zee read more Register now for FREE unlimited access to Reuters.comEditing by Antony Currie and Katrina HamlinOur Standards: The Thomson Reuters Trust Principles.Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.