The Zhitong Finance App learned that Cathay Pacific Haitong released a research report stating that the pace of A-share financing continued to improve marginally, with the A-share IPO scale being +209% year-on-year and +105% year-on-year; Hong Kong stocks continued to be active and had a significant year-on-year boost. From the beginning of the year to date, the Hong Kong stock IPO scale was HK$342.4 billion, an increase of 153% over the previous year. Investment and financing rebalancing has entered a new stage, and reform dividends continue to be released. Leading brokerage firms with more advantages in corporate customer resources, professional service capabilities, and cross-border service capabilities are expected to continue to maintain a leading position in the evolution of the investment banking business ecosystem.
Cathay Pacific Haitong's main views are as follows:
A shares: equity financing continued to pick up, and IPOs increased more than 2 times year on year
1) IPO: According to the issuance date statistics, 19 A-share companies were initially listed in August, an increase of 2 companies over the previous month, raising a total of 21.7 billion yuan; 2) Refinancing: According to statistics on the issue date, the monthly refinancing scale was 38 billion yuan. Since the beginning of the year, the A-share IPO scale was +209%, and the refinancing scale was +105%, continuing the improvement trend; 3) Mergers and acquisitions: the total number of major restructuring events of listed companies that have been disclosed since the beginning of the year reached 63, including 7 in August; 4) Bond issuance: The cumulative underwriting scale increased year-on-year, and the issuance scale of core bonds (corporate bonds+corporate bonds+convertible bonds) in August was 438.6 billion yuan. The cumulative year-on-year growth rate since the beginning of the year was +9%.
Hong Kong stocks: IPOs continue to grow at a high rate, and Alibaba's placement led to more than 100 billion refinancing in a single month
Since the second half of '24, Hong Kong stock trading activity has increased dramatically, and improvements in market liquidity have boosted a sharp recovery in Hong Kong stock IPOs and refinancing. Since the beginning of the year, Hong Kong stock IPOs were HK$342.4 billion, up 153% year on year, of which August was HK$3.7 billion; the refinancing scale was HK$308.6 billion, up 31% year over year, of which August was HK$108.2 billion, mainly due to Alibaba's large allotment logic.
Investment and financing rebalancing has entered a new stage, and reform dividends will continue to be released, benefiting many businesses such as brokerage investment banks
At the Lujiazui Forum in June, Chairman Wu Qing's speech emphasized actively embracing the new round of scientific and technological revolution and industrial transformation, and continuing to enhance the inclusiveness and adaptability of the capital market system. It also proposed science and technology innovation board reform measures such as expanding the scope of application of the fifth set of standards to the field of artificial intelligence and implementing strategic plans for developing future industries; in July, the Securities Regulatory Commission solicited public comments on improving the refinancing rules for listed companies, and proposed to promote key measures such as establishing a targeted refinancing reserve issuance system and optimizing the small-amount rapid refinancing system. The bank anticipates that brokerage investment banks are expected to benefit from accelerated investment and financing reforms and share the dividends of capital market reforms.
Investment advice
The pace of A-share equity financing continues to improve marginally. Hong Kong stocks continue to be active and have a significant year-on-year boost. Leading brokerage firms with more advantages in corporate customer resources, professional service capabilities, and cross-border service capabilities are expected to continue to maintain a leading position in the evolution of the investment banking business ecosystem.
Risk warning: The capital market fluctuates greatly; the pace of IPOs is tightening.