Hong Kong will weather tariff storm, finance chief says, touting ‘brisk’ IPO market Hong Kong can achieve “high-quality development” by leveraging its unique advantages and remaining open, the finance chief has said, as he hailed the stock market’s strong performance and pointed to an imminent listing set to be the biggest globally so far this year. Financial Secretary Paul Chan Mo-po also said on Sunday that despite fears over the impact of the United States’ tariffs on the world economy, the city’s initial public offering (IPO) market remained “brisk” and bank deposits were rising. “At a time when the global economic outlook faces multiple uncertainties, under the strong leadership of the central government, our country’s measures to stabilise the economy and expectations are gradually showing results,” Chan said. “In a complex and ever-changing external environment, as long as we remain firm in our goals, remain open and inclusive, continue to leverage our unique advantages and continue to do our own thing with all our strength, we will surely be able to achieve high-quality development in the changing situation.” Hong Kong’s stock market and wider economy came under enormous pressure last month after Beijing and Washington became embroiled in an escalating tit-for-tat trade war, before both sides reached an agreement last week to pause most tariffs for 90 days. On the first day of trading following US President Donald Trump’s initial “Liberation Day” tariff announcement in April, the Hang Seng Index slumped by 13.2 per cent to 19,828.30, losing HK$194 billion (US$25 billion) in value, its biggest decline since October 1997. But the index has since rebounded by more than 17 per cent, closing at 23,345 on Friday, with the minister noting the stock market was outperforming rivals. Market turnover had also increased, he said, with the daily average in April exceeding HK$270 billion, an increase of 1.4 times over the same period last year. The IPO market was also “very brisk”, he said, pointing to a “highly anticipated” listing of a leading mainland Chinese new energy company on Tuesday. Contemporary Amperex Technology (CATL), which makes lithium-ion batteries that power electric vehicles, is expected to raise HK$35.66 billion from the sale of 135.6 million shares at HK$263 apiece, the Post reported earlier. Shenzhen-listed CATL, which is capitalised at 1.2 trillion yuan (US$166.4 billion), is the ninth-biggest company trading on the mainland. Describing the listing as the “world’s largest” so far this year, Chan said it would push local IPO fundraising to HK$60 billion. He added that capital was flowing towards leading technology companies driving innovation and future industries with strategic value. Chan said the government would continue to strengthen the development of the finance and innovation and technology (I&T) sectors, which he called “the two engines” that would push Hong Kong to a new level. The government would also continue to leverage “patient capital” or long-term capital through the Hong Kong Investment Corporation to support the city’s I&T ecosystem and accelerate the cultivation of new high-quality development. The government investment arm is set to host the city’s first International Forum for Patient Capital on Thursday, which Chan said would include hundreds of representatives from sovereign funds, family offices, corporate venture capital firms and long-term capital companies from the Global South, among others. Meanwhile, in an article published in the Horizons journal of the Centre for International Relations and Sustainable Development think tank, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said Hong Kong stood out as a “haven for stability” amid uncertainties brought about by US tariffs. He added the government was pressing ahead with a comprehensive review of the city’s listing regime to “dovetail” with the latest corporate needs and economic trends. The move will cover pre- and post-listing requirements, as well as the vetting process, IPO thresholds and market structure. But some economists cautioned against adopting such a positive outlook, pointing to other challenges facing the city’s economy and uncertainty amid the US-China trade war. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3310792/hong-kongs-ipo-market-brisk-despite-ongoing-us-china-trade-tensions-paul-chan (ICE HONG KONG)

Fonte notizia: South China Morning Post