Hong Kong’s pipeline for preliminary public choices stays sturdy — although there’s extra warning in the mean time, given China’s elevated regulatory scrutiny, the chief government of Hong Kong Change and Clearing informed CNBC.
“Within the quick time period, clearly … this motion will trigger some potential issuers to be a little bit bit extra cautious and attempt to see when it is the suitable time to go to the market,” Nicolas Aguzin informed CNBC’s Emily Tan on Wednesday.
Hong Kong markets went right into a tailspin in late July after China tightened guidelines on the personal schooling business as a part of a broader pattern of accelerating regulation in sectors reminiscent of know-how and ride-hailing.
Final week, shares of gaming large Tencent plunged 10% following an article by Chinese language state media that known as on-line gaming “opium,” urging the business to stop habit amongst youngsters.
“When you’ve got volatility, it is often rather less doubtless that folks will need to rush into the market,” Aguzin mentioned. “However over the long run, proper now, we’re trying on the pipeline, there’s over 200 firms … with their filings within the docket.”
A document variety of 46 firms listed in Hong Kong within the first half of 2021. Whole funds raised got here to $211.7 billion Hong Kong {dollars} ($27.2 billion) from January to June this yr — up 128% from the identical interval in 2020.
Hong Kong is ranked in third place globally when it comes to IPO funds raised for the primary half of 2021, HKEX mentioned in its interim outcomes.
HKEX earnings
Hong Kong Change and Clearing on Wednesday introduced document revenues and income for the primary six months of the yr.
It was pushed by “a buoyant IPO market, sturdy buying and selling volumes and vital momentum in Inventory Join,” Aguzin mentioned in an announcement.
Inventory Join applications enable mainland buyers to commerce some shares in Hong Kong, known as southbound securities. This system additionally permits international buyers to commerce some shares listed in Shanghai and Shenzhen — known as northbound commerce.
Buying and selling volumes as a part of Inventory Join hit new highs, with a median each day turnover worth of 114.4 billion Chinese language yuan ($17.6 billion) for northbound flows, up 54% from the primary half of 2020.
Southbound flows had a median each day turnover worth of $48.1 billion, up 132% from the identical interval final yr, in line with the earnings report.
“Our key strategic and aggressive benefit is being China-anchored and linked to China,” mentioned Aguzin.
“We have now numerous our outcomes which have some connectivity to China. We expect that’s nice, that can proceed attracting worldwide buyers,” he informed CNBC.
