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.
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