Hong Kong IPO funds surge 822 per cent in record-breaking first quarter as US-listed Chinese tech giants opt for secondary flotations
- Hong Kong benefits from tension between Washington and Beijing as US-listed tech giants seek secondary listing here
- Recent market sell-off of Chinese tech firms may hurt market sentiment in second half, brokers say
Fundraising via new share listings in Hong Kong soared more than ninefold to a record in the first quarter, pushing the city’s main board to second place behind Nasdaq in the global rankings for initial public offerings (IPOs).
The strong momentum is likely to continue in the second quarter, according to analysts, as many more firms have already filed their listing applications. Things may tail off in the second half of the year, however, as uncertainty caused by recent stock market sell-offs stifles sentiment.
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Chinese e-commerce giant Alibaba starts trading on Hong Kong stock exchange
Hong Kong’s IPO market has benefitted from the deterioration in relations between Washington and Beijing, which has driven US-listed Chinese companies like search engine Baidu and video sharing platform Bilibili to take on secondary listings worth a combined US$5.68 billion this month.
“Hong Kong will continue to see many IPOs and secondary listings in the second quarter as many companies have already filed their applications. But the trend may well change in the second half of this year if market sentiment continues to get worse in the second quarter,” said Gordon Tsui, chairman of the Hong Kong Securities Association, an industry body for local financiers.
There are 70 companies that have filed their listing applications, according to stock exchange data.