End of Hong Kong's financial sector greatly exaggerated; HKEX welcomes 6 IPOs this week

Source:Globaltimes.cn Published: 2020/6/29 23:51:14

A view of the Hong Kong Stock Exchange’s building in February Photo: VCG

The Stock Exchange of Hong Kong (HKEX) is set to welcome six IPOs this week, the most in a single week for the city in over four months, highlighting the persistent attractiveness of the financial hub among companies and investors, despite fearmongering headlines over the city's prospects in the lead up to the National Security Law.

The six IPOs this week could raise a combined total of $1.7 billion and mark the busiest week since February, Bloomberg reported. The companies include e-cigarette device maker Smoore International Holdings, which is expected to raise about $919 million, and property management arm of Zhenro Properties Group, according to Bloomberg.

This week's new IPOs follow the earlier listings of tech giants from the mainland, including e-commerce behemoth JD.com Inc. and internet firm giant NetEase Inc. The increasing number of new IPOs from the mainland is set to boost another strong month for the HKEX, which was ranked first globally by number of IPOs in the first quarter of 2020, despite a slew of challenges. 

The IPOs also come as certain foreign officials and media outlets have been hyping "concerns" among investors over the upcoming National Security Law, with some even claiming the end of Hong Kong as a global financial and commerce hub with foreign investors and business predicted to flee the city.

"This is completely false, and contrary to reality. Most of my friends and myself are not willing to stay in Hong Kong unless a national security law is enacted," Angelo Giuliano, a financial consultant in Hong Kong from Switzerland who has been outspoken in condemning the unrest in the city, told the Global Times on Monday. 

Giuliano said that after months of violent riots, Hong Kong needs a national security law to protect the city and its citizens against the violence, terrorism and foreign interference. "We really need to get this law to restore peace and prosperity to Hong Kong," he said.

In Beijing, a draft of the new law is going through final stages before its expected passage at the three-day meeting of the Standing Committee of the National People's Congress (NPC), China's top legislative body. The NPC meeting is set to conclude on Tuesday, when the content of the draft law is widely expected to be released and immediately enacted.

Apart from the legislative process, there have also been a series of measures taken by mainland and Hong Kong officials to strengthen economic integration between the city and the mainland, in an apparent bid to help the city's economy, which is under serious pressure from a wide range of challenges, including social unrest, the COVID-19 pandemic and the China-US trade war.

On Monday, the People's Bank of China and the Hong Kong Monetary Authority launched a cross-boundary wealth management connect pilot scheme in the Guangdong-Hong Kong-Macao Greater Bay Area. The new connect will add to already-existing stock connects that have been operating for years.

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