Hong Kong’s IPO boom a sign overseas investment push is working, Paul Chan says Hong Kong’s push to attract overseas investment is showing positive results, the finance minister has said, citing the rise of the city’s stock exchange to the top of the global table for initial public offerings (IPOs) in the first half of the year and the market’s strong performance. Financial Secretary Paul Chan Mo-po said on Sunday that the achievements of the first six months showed that the government’s promotional efforts in recent years were starting to pay off. Noting the increasing interest in locally listed technology stocks, Chan vowed to further strengthen overseas publicity to help investors better understand Hong Kong’s advantages and development opportunities. “The stock market posted an 18 per cent gain last year. And the momentum continued to improve as we entered 2025,” he wrote in his weekly blog post. “The market is generally optimistic about the performance of the Hong Kong stock and IPO markets in the second half of the year.” He said the latest data showed that HK$107 billion (US$13.6 billion) had been raised through Hong Kong’s 42 IPOs in the first six months of the year, putting the city’s exchange in first place for funds raised globally. The amount raised so far this year was also 22 per cent higher than the whole of 2024. “The number of applications for IPOs in Hong Kong is also increasing rapidly. So far about 200 applications have been received, including companies from the Middle East and Southeast Asia,” he said. “That means the stock market boom is attracting more businesses to speed up their listing plans here. It also means that the publicity work in mainland China and overseas has gradually shown results.” The benchmark Hang Seng Index is up about 20 per cent this year, outperforming its mainland peers and the US’ S&P 500, although the latter has been trading at all-time highs. Chan noted that the city’s strong performance was mainly driven by finds chasing stocks in technology and innovation-led sectors. He added that exchange-traded products (ETPs) had contributed to the good performance of the Hang Seng Index in the first half of the year. More than 210 ETPs are listed in Hong Kong. Chan said that the total assets under management of the ETPs had reached nearly HK$510 billion as of May, a 30 per cent increase from 2020. ETPs, which include exchange-traded funds (ETFs), are financial securities that are traded on the market and track underlying securities, an index or other financial products. The first local ETF was launched in 1999. In his blog post, Chan said the Hong Kong stock exchange would promote the listing of more thematic ETFs covering sectors such as innovation, climate change response and renewable energy. “[This] will not only suit the interests of the investors but also more effectively guide the flow of capital to the promotion of high-quality development of the real economy,” he said. “We hope to better leverage global market resources through more institutional and product innovation, and consolidate and enhance Hong Kong’s position as the preferred ETF hub in the Asia-Pacific region.” Chan said he would visit South Korea this week to brief the financial sector on Hong Kong’s latest developments and its business environment. “Korean investors’ interest in Hong Kong’s financial market has been increasing recently … This trip can hopefully further increase their interest and participation in the Hong Kong market,” he said. Professor Terence Chong Tai-leung, executive director of Lau Chor Tak Institute of Global Economics and Finance at the Chinese University of Hong Kong, said he believed the city’s economy was on the path to improvement, despite some negative reports about shop closures or the jobless rate rising. “The issue at present seems to be that when people have earned money they tend to spend it on travelling overseas or going to the mainland. In the past, people would usually spend locally, on dining or buying things,” he said. “So, the issue is that the bosses in the catering and retailing sectors should think of new ways to attract more customers.” https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3317145/hong-kongs-ipo-boom-sign-overseas-investment-push-working-paul-chan-says (ICE HONG KONG)

Fonte notizia: South China Morning Post