HONG KONG: Hong Kong’s inventory trade remaining yr noticed the fewest new listings in additional than a decade, it mentioned Thursday as the town struggles to emerge from pandemic isolation and kickstart an financial restoration. Hong Kong Exchanges and Clearing (HKEX) reported 90 preliminary public choices throughout 2022, raking in HK$104.6 billion ($13.3 billion), a fall of just about 70 p.c from the former yr.
Sooner than the pandemic, Hong Kong’s bourse used to be regularly topped as the highest IPO venue on the planet, drawing greater than 100 new listings once a year between 2013 and 2020. The most recent figures mark a steep drop from height ranges in 2020 when IPOs raised HK$400 billion.
The recession-hit town’s trade additionally noticed annual income plunge 20 p.c to HK$10.1 billion, the primary drop since 2016. Initially of remaining yr, huge swathes of Hong Kong’s financial system close down because the extremely transmissible Omicron variant fuelled the town’s worst-ever coronavirus outbreak.
The industrial surroundings used to be additional difficult by means of a regulatory crackdown in mainland China that waylaid preliminary public choices from Chinese language mega-companies. Hong Kong markets rallied remaining month as buyers rode a wave of optimism about China’s reopening and hopes for an easing of US rate of interest hikes, regardless that they have got since fallen from a height in overdue January. Nonetheless HKEX noticed a burst of process within the ultimate stretch of 2022, with the remaining month on my own accounting for almost 1 / 4 of the IPOs.
Earnings within the fourth quarter additionally rose 11 p.c on-year to HK$2.98 billion, whilst quarterly income used to be up seven p.c. The second one part of the yr confirmed “encouraging momentum” within the IPO marketplace and Hong Kong stays within the best 4 markets globally in 2022, the trade operator mentioned. “Regardless of the difficult international financial and geopolitical backdrop, HKEX remained one of the most international’s premier capital-raising venues,” mentioned leader government Nicolas Aguzin.
The Chinese language finance hub has renewed its seek for world listings, with town chief John Lee individually making overtures to Saudi Aramco. HKEX’s proportion worth has slipped round 3 p.c because the get started of the yr whilst the town’s benchmark Dangle Seng Index is up round 3 p.c. On Wednesday, Hong Kong finance leader Paul Chan mentioned the inventory trade will learn about proposals to stay open throughout dangerous climate. —AFP