Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Hong Kong Exchanges and Clearing Limited
  6. News
  7. Summary
    388   HK0388045442

HONG KONG EXCHANGES AND CLEARING LIMITED

(388)
  Report
Delayed Hong Kong Stock Exchange  -  10:18:03 2023-02-07 pm EST
340.40 HKD   +0.35%
02/06Hktdc : Hong Kong ready for business; Delegation arrives in Riyadh
AQ
02/06Hong Kong Exchanges And Clearing : HKEX Signs Cooperation Agreement with Saudi Tadawul Group
PU
02/03Hong Kong Exchanges And Clearing : HKEX Names Head of Structured Products and Platform Business Development
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Hong Kong sees IPO slowdown reversing; eyes international issuers

11/30/2022 | 02:07am EST
FILE PHOTO: Hong Kong Exchanges and Clearing Ltd (HKEX) chairman Laura Cha Shih May-lung speaks during a ceremony marking the first day of trade after Lunar New Year at the Hong Kong stock exchange in Hong Kong

HONG KONG (Reuters) - Hong Kong has more than a hundred applicants in the pipeline for initial public offerings (IPOs) and is eyeing more companies and investors from markets including the Middle East and Southeast Asia, the chairman of the city's bourse operator said.

China's economic slowdown, a sweeping regulatory crackdown that has tightened scrutiny over companies' fundraising outside mainland China and geopolitical tensions have all resulted in a bleak year for new listings in Hong Kong.

In recent years, anti-government protests, the imposition of a sweeping national security law, and punishing COVID-19 containment measures have also clouded Hong Kong's status as a premier financial centre.

Public floats by Chinese companies account for most of the IPOs in Hong Kong, one of the top listing venues globally and a major driver of revenue and fee income for the world's biggest investment banks.

Roughly $6 billion has been raised via 50 IPOs so far this year in the Asian financial hub, Refinitiv data shows, down sharply from more than $25 billion in 2021. The bourse is on course to see its lowest IPO proceeds in a decade.

"I am quite confident that the IPO market activity will return very quickly in the new year," Hong Kong Exchanges and Clearing Ltd (HKEX) Chairman Laura Cha said in an interview at  the  Reuters NEXT conference. 

"Currently, we have over a hundred companies in the pipeline. Many of them are waiting for the market sentiment to improve so that their valuations could be better when they come to the market," she said.

While Cha expects Chinese companies, mostly those from the new economy sector, to revive their capital raising plans in Hong Kong, HKEX is also looking to attract others from elsewhere to burnish its credentials as an international platform.

On the radar are prospective investors and issuers from the Middle East and Southeast Asia.

"We are trying to broaden our international footprint in terms of the products that we are offering," she said. "In other words, we will make ourselves much more diversified (with) many more international companies and that will be our strategy."

International investors account for about 42% of investments in Hong Kong's equity market, and that share is "a lot higher" in the derivatives market, Cha said. "So, we are already international in nature, but we will continue to expand that."

Years of strict COVID restrictions have also badly hit Hong Kong's economy, but the city has lifted most of its curbs in the last couple of months.

"With COVID restrictions being removed, almost completely now, and the financial markets also performing well, I think we will be able to continue to attract new talents into Hong Kong," Cha said.

"So for us, there was, like the rest of Hong Kong, a higher attrition rate about 12 months ago, and that has come down now."

(To view the Reuters NEXT conference live on Nov. 30 and Dec. 1, please click here)

(Reporting by Sumeet Chatterjee; Editing by Ana Nicolaci da Costa)

By Sumeet Chatterjee


ę Reuters 2022
All news about HONG KONG EXCHANGES AND CLEARING LIMITED
02/06Hktdc : Hong Kong ready for business; Delegation arrives in Riyadh
AQ
02/06Hong Kong Exchanges And Clearing : HKEX Signs Cooperation Agreement with Saudi Tadawul Gro..
PU
02/03Hong Kong Exchanges And Clearing : HKEX Names Head of Structured Products and Platform Bus..
PU
02/03Hong Kong Exchanges and Clearing Limited Appoints Matthew Cheong as Managing Director, ..
CI
01/26UK watchdog still probing LME nickel trading suspension
RE
01/19Exchanges diversify as base metals trade shrinks in..
RE
01/17Nomura Adjusts Hong Kong Exchanges and Clearing's Price Target to HK$424.78 From HK$382..
MT
01/16Hong Kong Exchanges And Clearing : HKEX Management Changes
PU
01/16Hong Kong Exchanges and Clearing Limited Announces Executive Appointments
CI
01/11UK watchdog blocks LME plan to restart Asian hours nickel trade-sources
RE
More news
Analyst Recommendations on HONG KONG EXCHANGES AND CLEARING LIMITED
More recommendations
Financials
Sales 2022 18 026 M 2 297 M 2 297 M
Net income 2022 9 765 M 1 244 M 1 244 M
Net cash 2022 106 B 13 533 M 13 533 M
P/E ratio 2022 44,1x
Yield 2022 2,05%
Capitalization 429 B 54 698 M 54 698 M
EV / Sales 2022 17,9x
EV / Sales 2023 15,0x
Nbr of Employees 2 146
Free-Float 94,1%
Chart HONG KONG EXCHANGES AND CLEARING LIMITED
Duration : Period :
Hong Kong Exchanges and Clearing Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends HONG KONG EXCHANGES AND CLEARING LIMITED
Short TermMid-TermLong Term
TrendsNeutralBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 26
Last Close Price 339,20 HKD
Average target price 386,88 HKD
Spread / Average Target 14,1%
EPS Revisions
Managers and Directors
Alejandro Nicolas Aguzin Chief Executive Officer & Executive Director
Bik Yun Lau Group Chief Financial Officer
May Lung Cha Non-Executive Chairman
Chung Kwong Leung Group Chief Technology Officer
Trevor William Spanner Group Chief Information Officer
Sector and Competitors