Hong Kong’s IPO revival is ‘inevitable’ as returning investors drive surging applications, stock exchange CEO says

‘It is just a matter of time’ before Hong Kong sees listings from Middle East companies and mainland industry leaders, says HKEX CEO Bonnie Chan

HKEX has received over 100 new listing applications this year, with activity having picked up especially after China’s support measures, according to Chan

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Bonnie Chan, chief executive of Hong Kong Exchanges and Clearing Limited (HKEX), speaking during the Capital Markets Forum (CMF) at the HKEX Connect Hall at the Exchange Square in Central on 9 May 2024. Photo: Edmond So

Published: 4:30pm, 9 May 2024Updated: 6:09pm, 9 May 2024

Listing applications have surged in Hong Kong, as the rising flow of investment funds in Asia’s third-largest stock market creates the perfect condition for Hong Kong Exchanges and Clearing Limited (HKEX), said its chief executive.

Hong Kong is back on global investments radar, after the announcement last month by the China Securities Regulatory Commission (CSRC) that would facilitate Hong Kong listings by leading Chinese companies. The regulator also announced the expansion of the Stock Connect cross-border investment scheme to enhance the city’s status as an international financial centre.

“The new measures are beginning to attract fund flows in the market, and turnover has risen, creating a more favourable environment for companies to launch their new listings,” said the HKEX’s chief executive Bonnie Chan Yiting, during the Capital Markets Forum at the exchange’s Connect Hall.

“It is just a matter of time [before] some of the biggest Middle East companies will launch initial public offerings (IPOs) raising funds in Hong Kong,” she said, adding that the emergence of mainland China’s industry leaders on the city’s bourse is “inevitable.”

Bonnie Chan, CEO, HKEX addresses the CMF Capital Markets Forum at HKEX, Exchange Square. Photo: Edmond So

HKEX, the world’s top IPO destination seven times between 2009 and 2019, has received more than 100 listing applications this year, with first-quarter applications rising by 30 per cent from last year to 60 bids, Chan said.