De-dollarization propels HK IPO value to $88b in second quarter

Hong Kong’s initial public offerings in the second quarter leapt more than nine times in value to HK$88 billion in the second quarter, according to the Securities and Futures Commission, as the city’s stock market remains favored by global investors amid de-dollarization.

The data, from the SFC's April-June quarter report, unveiled that the securities regulator handled 121 new listing applications, including 11 from pre-profit biotech enterprises, 11 from specialized technology companies, and one from an investment firm, without naming them.

The second quarter also recorded 12 debuts.

For the first seven months of the year, 51 companies had new share sales and raised HK$128 billion – surging over 610 percent from one year ago – the SFC said.

The securities market also saw the average daily trading volume soar 85 percent to HK$243.7 billion, as the Hong Kong stock market rebounded to a more than three-year high.

For the first half of the year, mainland investors contributed a net inflow of HK$731.2 billion via the Southbound Stock Connect.

The Southbound Stock Connect's daily trading volume accounted for about 23.1 percent of the bourse’s total turnover.

In addition, the number of assets under the management of Hong Kong-registered funds grew 39 percent from one year ago, with money market funds continuously recording inflows.

In terms of digital assets, the number of SFC-recognized virtual asset spot exchange-traded funds increased by three to nine in total.

The SFC added that the first six recognized virtual asset spot ETFs saw their daily trading volume rise by 13 percent, while market capitalization surged by 73 percent.

STAFF REPORTER