Source: Securities Times, Author: Roman
Charles Li, CEO of Hong Kong Stock Exchange, said at the Bloomberg Asia Wealth Summit on Wednesday that the Hong Kong market is still an attractive listing platform for companies with high R&D expenses and many technology companies. Listing rules chapter 18C can meet the needs of special technology companies.
It is worth mentioning that the first special technology new stock, Jingtalike Technology, entered the IPO stage officially on June 4th, and was already oversubscribed on the first day of IPO. As of the reporter's report, the public offering of the stock is oversubscribed 27 times, indicating that the market is still bullish on the technical enterprises in chapter 18C.
According to data from reporters, as of the end of May this year, Hong Kong Exchange has welcomed a total of 21 new listings, of which 10 are new economy (information technology, medical care) companies, accounting for 48%. At the same time, the Hong Kong Stock Exchange has also increased the withdrawal of junk stocks, with a total of 20 companies being delisted.
The Hong Kong Stock Exchange welcomes the "new".
According to data released on the Hong Kong Stock Exchange website, as of the end of May, a total of 21 new stocks were listed this year, with a total fund raising of HKD 9.596 billion. The number of new stock listings was 7 less than the same period last year, and the amount of funds raised has decreased by 39.26% year-on-year.
Looking at the industry distribution, 10 of the 21 listed new economy enterprises accounted for 48%, followed by daily/optional consumer industries, accounting for 23.8%, or 5, and the rest were industrial, real estate, and material industries.
Han Yingjiao, Senior Vice President of Hong Kong Stock Exchange and Head of the China Market Listing and Issuance Service Department, stated that since the listing system reform in 2018, Hong Kong has successfully listed 299 new economy companies, with IPO funds of HKD 944.9 billion, accounting for 65.1% of the total IPO financing of Hong Kong stocks. The reform of the listing system has shaped Hong Kong's capital markets new economic ecosystem, such as the biotech-related Chapter 18A of the listing rules, which has made Hong Kong a leading medical and health fund-raising center in the world, with 127 medical and health IPO companies, with a total fundraising of more than HKD 276.8 billion.
Looking at the IPO subscription situation, of the 21 listed companies this year, 19 were oversubscribed, accounting for 90.5%, and 2 were undersubscribed, accounting for 9.5%, which are Chabaida and Stunda in.
This year's list of new stock listings.
Although the number of listings and fund-raising amounts in the Hong Kong IPO market has dropped year-on-year before May 2024, the performance of new Hong Kong stocks listed in the first five months is much better than expected.
According to Wind data, on the first day of the 21 new stock listings, 14 rose, accounting for 66.7%, with an average increase of 43.3%, and 6 fell, accounting for 28.6%, with an average decline of 21.2%. There were five that rose more than 100% in the first five trading days, and Changjufeng had the highest increase and rose by 10.4 times. The largest decline in the first five months was Tianjin Jianfa, which fell by 52.4%.
On June 6, Charles Li, Vice Chairman and Co-Chief Operating Officer of Hong Kong Exchanges and Clearing Limited (HKEX) and Co-Head of Market Development, said at the Greenwich Forum that many of the companies now going public in Hong Kong represent the emerging powers of Asia and embody the spirit of the most innovative. In the past few years, many companies listed in Hong Kong have been in the new economy industry.
In the conversation, Charles Li particularly emphasized the importance of interconnection between the mainland and Hong Kong stock markets. He said that the interconnection between the mainland and Hong Kong stock markets is unique and is an important liquidity indicator between the mainland market, the Hong Kong market, and the Asian market.
Charles Li also spoke about the expansion opportunities in Southeast Asian markets. "They are also paying attention to the Hong Kong stock market, and we need to create more opportunities to attract more resources from Southeast Asian markets to Hong Kong."
Sweep away the "old".
While awaiting the "new," the Hong Kong stock market has not forgotten to increase its efforts to withdraw from listing. According to Wind data, as of the end of May, 20 listed companies have been delisted, of which 13 have had their listing status cancelled and 7 have been privatized.
Hong Kong Exchanges and Clearing Limited introduced the "accelerated delisting" mechanism in 2018. According to Chapter 6.01A of the listing rules of the Hong Kong Stock Exchange main board and Chapter 9.14A of the listing rules of the Hong Kong Growth Enterprise Market (referred to as "GEM"), if a main board listed company remains suspended from trading for more than 18 months in a row or if a GEM listed company remains suspended from trading for more than 12 months in a row, HKEX has the right to cancel the company's listing status.
Most of the reasons for the suspension of Hong Kong listed companies are due to major inappropriate behavior and the failure to publish financial performance or insider information, the inability of listed companies to maintain business operations, financial reports with unrepresentative or negative opinions, insufficient public ownership, or being instructed to suspend trading by the Hong Kong Securities and Futures Commission.
Editor/Lambor