Hong Kong’s stock exchange yesterday reported record profits and trading turnover, after a bumper initial public offering (IPO) that may signal a turnaround in the city’s fortunes as a listing hub.
Profit attributable to shareholders rose 10 percent to HK$13.1 billion (US$1.68 billion) last year while daily turnover for the cash equities market peaked at US$80 billion, Hong Kong Exchanges and Clearing (HKEX) said in a statement.
The Chinese finance hub saw a prolonged slump in IPOs since 2020, with mega-companies pausing their listing plans in light of Beijing’s regulatory crackdown.
Photo: Yik Yeung-man, Bloomberg
But the US$4 billion IPO of Chinese appliance maker Midea Group Co (美的集團) in September last year — the largest since 2021 — fueled hopes that Hong Kong could reclaim the crown as the world’s top listing destination.
Chief executive Bonnie Chan (陳翊庭), who took over in May last year and is the first woman to lead the stock exchange, said HKEX had made "significant strategic progress" last year.
"The improved macro backdrop supported renewed vibrancy and robustness of our markets, which was reflected in the largest IPO in Hong Kong since 2021 as well as an all-time record trading turnover," Chan said.
There were 71 IPOs, raising US$11.3 billion last year -- far below pre-pandemic peaks — but listing activity "noticeably stepped up momentum in the second half of the year as a result of China monetary and fiscal measures," Chan added.
Revenue and other income also grew nine percent to US$2.9 billion, a fresh record.
Chan said Hong Kong’s fundraising and secondary markets will be buoyed by "stimulative policies in mainland China and interest rate cuts in other major markets" this year.
Chinese battery giant Contemporary Amperex Technology Co Ltd (寧德時代), which provides more than a third of electric vehicle batteries sold worldwide, applied this month to list in Hong Kong, which analysts say can fetch more than US$5 billion.
Shanghai-based toymaker Bloks Group Ltd (布魯可集團) raised US$215 million in its Hong Kong debut last month, while the upcoming IPO of Chinese tea drink company Mixue Group (蜜雪集團) has seen strong demand, according to Bloomberg.
Hong Kong Financial Secretary Paul Chan (陳茂波) announced a program on Wednesday to fast-track the listing of specialist technology and biotech firms, particularly those already listed in China.
The stock exchange also implemented a long-awaited change in September last year to keep markets open during typhoons, matching the practice of major exchanges worldwide.
The city’s benchmark Hang Seng Index climbed to a three-year high this week, thanks in part to a recent surge in Chinese tech companies.
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
NEXT GENERATION: The company also showcased automated machines, including a nursing robot called Nurabot, which is to enter service at a Taichung hospital this year Hon Hai Precision Industry Co (鴻海精密) expects server revenue to exceed its iPhone revenue within two years, with the possibility of achieving this goal as early as this year, chairman Young Liu (劉揚偉) said on Tuesday at Nvidia Corp’s annual technology conference in San Jose, California. AI would be the primary focus this year for the company, also known as Foxconn Technology Group (富士康科技集團), as rapidly advancing AI applications are driving up demand for AI servers, Liu said. The production and shipment of Nvidia’s GB200 chips and the anticipated launch of GB300 chips in the second half of the year would propel
‘MAKE OR BREAK’: Nvidia shares remain down more than 9 percent, but investors are hoping CEO Jensen Huang’s speech can stave off fears that the sales boom is peaking Shares in Nvidia Corp’s Taiwanese suppliers mostly closed higher yesterday on hopes that the US artificial intelligence (AI) chip designer would showcase next-generation technologies at its annual AI conference slated to open later in the day. The GPU Technology Conference (GTC) in California is to feature developers, engineers, researchers, inventors and information technology professionals, and would focus on AI, computer graphics, data science, machine learning and autonomous machines. The event comes at a make-or-break moment for the firm, as it heads into the next few quarters, with Nvidia CEO Jensen Huang’s (黃仁勳) keynote speech today seen as having the ability to
WAIT-AND-SEE: Last month’s consumer price index came in at 2.8%, which boosts expectations that the Fed would proceed cautiously to lower inflation sustainably The US Federal Reserve is widely expected to keep interest rates unchanged at its policy meeting this week, treading carefully amid uncertainty over US President Donald Trump’s economic policies, which include spending cuts and sweeping tariffs. Since January, Trump has imposed levies on major trading partners Canada, Mexico and China, and on steel and aluminum imports, roiling financial markets and fanning fears that his plans could tip the world’s biggest economy into a recession. The Trump administration has also embarked on unprecedented cost-cutting efforts that target staff and spending, while the US president has promised tax reductions and deregulation down the road. However,
RSS