Hong Kong IPO market seen indispensable, continually drawing global interest - HKEX chief

Hong Kong Exchanges and Clearing (0388) chief executive Bonnie Chan Yi-ting said the enthusiasm for Hong Kong initial public offerings will continue, emphasizing that Chinese assets have become indispensable to foreign investors.

This follows Hong Kong’s return to the top spot in global IPO fundraising in the first half of the year, with average daily market turnover doubling.

In an interview with Securities Times, Chan noted that amid the complex global landscape, a growing number of foreign investors are turning to Hong Kong to invest in Chinese assets for portfolio diversification. Chinese assets, once considered "uninvestable" by some foreign investors several years ago, have now become "impossible to ignore."

Chan mentioned that over 200 companies are currently in the IPO pipeline, half of which are technology firms. The list includes a significant number of companies listed under Chapters 18A and 18C, as well as mature new-economy enterprises.

She emphasized that supply has never been a concern, given the steady stream of companies preparing to list. Instead, the focus lies on demand – whether investors are willing to invest. In this regard, she has observed many positive signals. Foreign interest in Chinese assets has surged significantly since the beginning of the year.

For instance, in recent large-scale IPOs, foreign subscriptions accounted for a substantial portion, particularly in high-tech sectors where overseas investors – from Europe, the United States, the Middle East, and Southeast Asia – made up 70 to 80 percent of the subscriptions.

Regarding the recent trend of mainland firms' dual listings, Chan revealed that HKEX estimates show that, on average, A-share liquidity of these companies increased by 15 percent this year after their Hong Kong listings.

STAFF REPORTER