Hong Kong and Indonesia – among Asia’s most active IPO markets – sign accord to explore cross listings, joint product development
- Indonesia was ahead of Hong Kong in global IPO rankings in the first half of this year mainly due to certain blockbuster listings
- The MOU will be a “win-win agreement” seen benefiting both Hong Kong and Indonesian exchanges, a Deloitte partner says
Hong Kong and Indonesia, which were among the top 10 markets worldwide in terms of funds raised from new share listings in the first half of this year, have signed an agreement to explore cross border listings and joint product developments.
The accord will promote cross listings and help Hong Kong achieve its goal to get more international companies to list in the city, brokers and consultants say.
Bourse operator Hong Kong Exchanges and Clearing (HKEX) CEO Nicolas Aguzin signed a Memorandum of Understanding (MOU) with Indonesia Stock Exchange (IDX) president director Iman Rachman on Wednesday at the main hall of the Indonesian exchange in Jakarta, according to a statement issued by the local bourse.
Under the MOU, HKEX and IDX will join hands to develop cross-border listings and promote joint product development and ESG (environmental, social and corporate governance) initiatives.
The MOU will allow the two bourses to “continue to build the connectivity between Hong Kong and Southeast Asia, one of the world’s fastest-growing and most exciting regions,” Aguzin said, as he met with a business delegation led by Hong Kong’s Chief Executive John Lee Ka-chiu.
