The Zhitong Finance App learned that the amount of capital raised in Hong Kong's IPOs is expected to reach a new high this year. Li Zhenguo, vice chairman of UBS's Global Investment Banking Department and co-head of the Asian Corporate Client Division, said in an exclusive interview with the media that the US interest rate hike in September was in line with market expectations, and market liquidity is still strong. UBS recently raised its annual capital raising forecast to a maximum of HK$450 billion. UBS recently raised its forecast fund-raising range for the full year of this year from HK$350 billion to HK$400 billion in May, to HK$400 billion to HK$450 billion.
According to public data, Hong Kong recorded 117 IPOs in the first three quarters of this year, raising a total of at least HK$387.349 billion, an increase of 1.11 times year-on-year. This is over HK$100 billion more than the amount raised last year of HK$286.9 billion.
Looking ahead to future market development, Lee Chun-kwok said, “Continued AI-related investment in the next one to two years, and Hong Kong IPO projects are expected to continue to improve in the fourth quarter and the first half of next year... I believe investors are still interested in continuing to participate in companies with strong investment stories and long-term growth potential, such as leading high-quality technology-related companies.”
In terms of the types of listed companies, in addition to AI sector companies and mainland companies as the main sources of listing channels, international companies' interest in listing in Hong Kong has also increased significantly. Take the Southeast Asian Indonesian gold mining company Merdeka Gold (06228), which went public in June this year, as an example. UBS acted as one of its co-sponsors, and the project successfully attracted international capital attention. Li Zhenguo revealed that since the project was completed, it has received inquiries from many international companies in the industrial, consumer, and medical fields about listing in Hong Kong.
He said, “Since Merdeka Gold was listed, many more international companies have come to Hong Kong to inquire. I think the number of non-Chinese related companies will increase in the next year... In addition, in addition to AI-related companies, traditional industries, such as consumer goods themes and traditional industries, have performed generally since this year, because from the perspective of valuation, cash flow, and dividends, it is believed that they will regain market attention in the future.”
Referring to the second phase of consultation on improving the competitiveness of the listing carried out by the Hong Kong Stock Exchange in September, Li Zhenguo revealed, “When discussing listing matters in Hong Kong with international companies, they all mentioned that if they want to be listed mainly, the rules involving many related transactions need to be followed, and the cost of compliance is higher than in other countries. International companies are also aware of the benefits of listing in Hong Kong, such as increasing capital pools and increasing stock liquidity. Therefore, if regulatory approval and disclosure requirements can be streamlined, international companies will be strengthened to consider entering the Hong Kong market.”
Furthermore, the consultation proposed shortening the parent company's requirement for the first 3 years of inseparable listing to 1 year. Li Zhenguo believes that AI is currently developing extremely rapidly, which is just in line with the urgent need for rapid financing and expansion of emerging companies such as AI.