Asia Top Fundraiser: The condition of Hong Kong’s stock market was not special even some time ago. The effect of China’s recession was visible here also. There was not much activity in the deal book, investors were in bad mood and bankers were leaving the industry, but this year the tables were turned completely.
The sale of shares in the Hong Kong stock market through Initial Public Offering (IPO), placement and block trade has increased almost four times to more than $ 73 billion. For the first time since 2013, Hong Kong emerged as the number 1 fundraising destination in Asia. In this matter, Hong Kong is just behind America in the world. India is at number two in this list.
Got boost from Chinese companies
According to Bloomberg report, the rise in Hong Kong’s stock market was boosted by Chinese companies, which made many big deals to expand their reach at the global level. Now in this regard, take the Chinese battery manufacturing company Contemporary Amperex Technology, which raised $5.3 billion in the world’s second largest listing in May this year. Similarly, electric vehicle manufacturer BYD and smartphone manufacturing giant Xiaomi Corp. also raised more than $5 billion in share placement. Even after America imposed tariffs, deals continued to be made.
Hong Kong stock market is continuously moving forward
Goldman Sachs Group Inc. “This year has been better than expectations,” said James Wang, head of equity capital markets for Asia excluding Japan. “We expect volumes to continue to grow, although at a slower pace.
This pace of deal breaking and fund raising has been seen across Asia. Four of the world’s five largest share sale locations are from this continent alone. Among these, Hong Kong is at number one. After that there are India, China and Japan. According to the Hong Kong Stock Exchange, the Hong Kong IPO pipeline is also looking good, with about 300 companies waiting to list their shares.
Bloomberg, quoting people with knowledge of the matter, said in its report that the largest possible IPOs include Syngenta Group and A.S. Watson Group is incorporated. Apart from these, listing of shares of Chinese AI companies is also expected. The Hang Seng Index has gained 29.5 percent this year, which is its best performance since 2017.
India is no less in this matter
India ranks second in Asia in terms of deal making. “Today we have more billion-dollar deals than ever before,” Manan Lahoti, head of capital markets at law firm Cyril Amarchand Mangaldas, said of the Indian market. “This year alone we will do more filings or launches than all the previous years combined.”
In India, IPOs set a record for the second consecutive year, raising more than $20 billion, driven by a growing pool of money from domestic mutual funds and retail investors. Existing shareholders have also started competing to sell their holdings through block trade.
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