Funds collected via Hong Kong IPOs skyrocket as more Chinese firms head home
Published: Apr 10, 2021 12:04 AM
Pedestrians pass by the office of HKEX in Hong Kong. File photo: VCG

Pedestrians pass by the office of HKEX in Hong Kong. File photo: VCG

The amount of funds raised through IPOs in Hong Kong hit HK$132.8 billion ($17.07 billion) in the first quarter, a surge of 822 percent from the year before, Hong Kong Exchanges and Clearing (HKEX), the operator of the Hong Kong stock market, revealed Friday, amid an upturn in homecoming flotations as the US toughens curbs on Chinese stock listings.

In a sign of buoyant trading, the average daily turnover in Hong Kong soared 86 percent year-on-year to HK$224.4 billion for the first three months, according to the bourse's newest monthly market highlights. 

Also, market capitalization totaled HK$52.1 trillion at the end of March, up 59 per cent from the same period last year.

The data came on the heels of remarks from Carrie Lam, chief executive of the Hong Kong Special Administrative Region (HKSAR), that she backs proposals to relax listing requirements for the Hong Kong bourse. 

With regard to proposals to relax listing requirements for firms seeking to float in the Hong Kong market, Lam said on Thursday that she supports, in principle, all measures that break down barriers.

The HKEX is an independent listed firm, but it has the HKSAR government's support for all measures taken to attract local and overseas companies seeking stock listings in the market, media reports said on Thursday, citing Lam.

NASDAQ-listed Chinese search engine Baidu debuted in Hong Kong in late March, becoming the latest in a string of homecoming equity offerings in the Asian financial hub.

Global Times