Hong Kong bank deposits grew 3.4 per cent in first nine months of 2021 as record fundraising from popular IPOs brought in capital

As many as 73 companies raised US$35.9 billion between January and September via new listings, the most since records began in 1980

Whenever there are popular IPOs, capital flows in to the city and boosts bank deposits, broker says

Reading Time:2 minutes

Total deposits, in local and foreign currencies, grew 3.4 per cent to HK$15 trillion (US$1.9 trillion) at the end of September. Photo: Bloomberg

Published: 7:45pm, 29 Oct 2021Updated: 11:08pm, 29 Oct 2021

The amount of money deposited in Hong Kong’s banks jumped in the first nine months of this year as investors targeted a series of hotly-anticipated initial public offerings (IPOs) in the city, a trend that is likely to continue, according to stockbrokers.

Total deposits, in local and foreign currencies, grew 3.4 per cent to HK$15 trillion (US$1.9 trillion) at the end of September, data from the Hong Kong Monetary Authority (HKMA) showed on Friday.

The increase was the result of strong demand for a string of stock flotations during the period, said Jeffrey Chan Lap-tak, a founding partner at Oriental Patron Financial Group, a Hong Kong-based firm.

“Whenever there are popular IPOs, there is capital inflow in the city which boosts the amount of deposits,” Chan said.

“The trend is likely to continue as mainland companies consider Hong Kong to be the best location for listings because of its deep liquidity. A listing can help them tap the funds of international investors.

“Some US-listed mainland firms are seeking dual primary-listings or secondary listings to negate the risks of being delisted in the US.”

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x