In this Nov 4, 2020 photo, stock activity of the Alibaba Group Holding Ltd (top center) is displayed above a security guard as he stands outside the Exchange Square towers in Hong Kong. (ANTHONY WALLACE / AFP)
HONG KONG – The Hong Kong Stock Exchange raised HK$210.8 billion (US$27.15 billion) in initial public offerings in the first half of 2021, a 127 percent year-on-year increase, as several large Chinese mainland companies went public, EY said on Thursday.
Over 80% of IPOs in Hong Kong came from companies in the mainland which accounted for 97.5% of proceeds
Forty-five companies listed in Hong Kong, and while the number of IPOs decreased 24 percent from the year before, the proceeds grew significantly thanks to Baidu, Bilibili, Ctrip, and Autohome, which provided 38 percent of the proceeds from the top 10 IPOs, an EY spokesperson told a news conference in Hong Kong.
Over 80 percent of IPOs in Hong Kong came from companies in the mainland which accounted for 97.5 percent of proceeds. The technology, media and communications sector was the top fundraiser, accounting for 54 percent of proceeds.
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“Fundraising from IPOs in Hong Kong hit a new high thanks to the homecoming of mainland concepts stocks,” said Jacky Lai, Hong Kong assurance partner at EY. “And with the inclusion of Sci-Tech Innovation Board (STAR Market) in the Shanghai-Hong Kong Stock Connect, adjustments to constitution stocks of the Hang Sang Composite Index and a further advancement of the simplified listing system for overseas issuers, the IPO market in Hong Kong is expected to become more attractive and competitive.”
In addition, 247 companies were estimated to be listed on the A-share market in the first half of 2021, a year-on-year increase of 109 percent, and the funds raised increased 52 percent to 211.8 billion yuan. Industrials topped the number of IPO deals and proceeds, followed by the TMT sector.