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Enoch Yiu

The Hong Kong stock exchange reclaimed its crown as the No 1 IPO market in the world in 2018, beating last year’s winner New York, as listing reforms led to the highest fundraising in eight years, according to Refinitiv data.
Hong Kong’s main board had a 17.6 per cent share of the global IPO market this year as of December 21, with 125 companies raising US$36.5 billion. This was the highest since 2010 and up 175.5 per cent from last year, according to the data provider formerly known as Thomson Reuters.
The New York Stock Exchange on the other hand saw 64 IPOs raising US$28.9 billion, accounting for 13.9 per cent of the global IPO market.

While Hong Kong was the No 1 IPO market in 2015 and 2016, the city mainly attracted traditional manufacturing firms and financial companies, with few tech companies listing here as they preferred New York and the Nasdaq.
In terms of TMT (telecommunications, media and technology) listings, Hong Kong came second after Tokyo in its highest ranking ever in this category.
The largest reforms in 25 years allowing dual-class shareholding companies and pre-revenue biotech firms to list proved to be a major driving force in boosting tech IPOs this year.

Dual-class or weighted voting rights shareholding companies allow founders and key management greater say than other shareholders. These are favoured by many technology companies such as Facebook, Google, JD.com and others.
The reforms launched by the bourse operator Hong Kong Exchanges and Clearing in April attracted two dual-class shareholding companies: the world’s fourth largest smartphone maker Xiaomi, which raised US$5.4 billion in its July listing, and food delivery firm Meituan Dianping with its US$4.9 billion IPO in September.


Mobile tower operator China Tower’s US$7.5 billion IPO – the largest IPO in Hong Kong this year – was also tech related.
Overall TMT IPOs raised US$15.7 billion, up 605.5 per cent from 2017 while the number grew 94.4 per cent year on year.

Tokyo’s rise to third place in the IPO league table this year was also due to its ability to draw tech plays with US$24.5 billion in proceeds. This was mainly due to Softbank mobile unit’s US$23.3 billion jumbo IPO this month – Japan’s largest ever IPO and the world’s second largest after Alibaba Group Holding’s US$25 billion fundraising in New York in 2014.
The Japanese conglomerate owns stakes in e-commerce giant Alibaba and ride-sharing companies Uber and Didi Chuxing, among others.
Alibaba is the parent company of the South China Morning Post.
China tech IPO boom to carry on into 2019: China Renaissance CEO
Telecommunications and hi-tech were the two biggest fundraising sectors in Hong Kong this year, representing 39 per cent of funds raised, compared to 10 per cent in 2017. The financial sector, traditionally the largest sector in Hong Kong, this year represented just 9.5 per cent of all fundraising, compared to 32 per cent last year.
The total funds raised from Hong Kong’s equity capital markets – share placements, rights issues and IPOs – stood at US$64.2 billion in 2018, up 80 per cent year on year. It was also the highest after US$91.7 billion raised in 2015.

“The listing reform has attracted many big players to list in Hong Kong but it was at the expense of lowering our corporate governance standards,” said Jeffrey Chan Lap-tak, founding partner of Oriental Patron Financial Group. “The HKEX will need to introduce more measures to enhance investor protection.”
Is the IPO wave of 2018 the last hurrah before the party ends?
Francis Leung Pak-to, chairman of the Chamber of Hong Kong Listed Companies, said Hong Kong’s IPO market will face pressure from Shanghai when it launches its new tech board in 2019, as China’s financial capital will be competing for the same group of unicorns as Hong Kong and the US.


The accounting and consulting firm KPMG said that it expects IPOs to decline by HK$100 billion (US$12.7 billion) next year amid market uncertainties.
Stephen Chan Yiu-kwong, a partner at global law firm Dechert, said that unless issues surrounding the global markets – the US-China trade war, Brexit and political unrest in certain parts of Europe – are resolved, Hong Kong will see a noticeable slowdown in IPO activity next year.



More Hong Kong IPO hopefuls emerge as sentiment draws global investors

Hong Kong IPOs outshine broader market spurred by inflows from global, Chinese funds

‘From A to H’: CATL’s Hong Kong IPO opens gates to mainland firms’ stock sales in the city

CSRC streamlines IPOs as China doubles down on ‘high-level’ market opening amid trade war

Hong Kong regains global IPO crown from New York in 2018 thanks to its listing reforms

Traders are reflected in signage while working on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, March 27, 2017. U.S. stocks fell, extending a decline on Friday after President Trump failed to pass his health-care bill, undermining optimism he can enact growth policies that invigorated bulls after the election. Photographer: Michael Nagle/Bloomberg

Image of Xiaomi Corp's, electronics and smartphones company, listing ceremony at Connect Hall of Hong Kong Stock Exchange at HKEX Connect Hall at Central. Hong Kong Exchanges and Clearing Chief Executive Charles LI Xiaojia (L) toasts with Lei Jun, Xiaomi founder, Chairman and CEO. 09JUL18 SCMP / Sam Tsang

Tong Jilu, chairman of China Tower, attends the company’s listing ceremony at the Hong Kong stock exchange, on August 8. The mobile tower operator’s US$7.5 billion IPO was the largest in the city this year. Photo: Edward Wong

Hong Kong IPOs to raise HK$100 billion less in 2019, says KPMG

Seven companies listed in Hong Kong slashed their IPO sizes recently, amid a surge in new share offerings and a major sell-off in the equity market. Photo: Winson Wong

Biscuit maker co-founded by former Miss Hong Kong applies for IPO, plans to expand to Canada and Taiwan

Cookies Quartet ranked second in Hong Kong in terms of revenue last year

Cookies Quartet offers 30 flavours and owns eight stores across Hong Kong. Photo: Facebook

Bitmain, Canaan and Ebang IPO plans snared by Trump’s tariffs on Chinese cryptocurrency mining gear

Beijing-headquartered Bitmain is likely to be the worst affected among the three Chinese mining hardware makers by the new US tariffs targeting Chinese goods

epa06062691 (20/26) An employee puts labels on AntMiner S9 mining machines, in Shenzhen, China, 09 November 2016. The AntMiner S9 is the most efficient mining machine on the consumer market right now and is produce by a Chinese company called Bitmain. It's current cost is USD 1,113. Due to the high price of bitcoin, it has been out of stock for a long time. The price in a black market is most doubled. China is one the main exchange market of bitcoins although the digital currency exists in a legal limbo and prone to speculation. The country hosts some of the biggest 'mining pools' in the world, clusters of supercomputers which task is minting new bitcoins and maintaining the system, sometimes installed in shady places close to power plants. Sichuan has become known as 'the capital of bitcoin mining' as entrepreneurial Chinese set up 'mines' there due to its abundance of hydropower, perfect for the high electricity needs of the large number of computers required for Bitcoin mining. Bitc

FILE PHOTO: Bitcoin mining computers are pictured in Bitmain's mining farm near Keflavik, Iceland, June 4, 2016. Picture taken June 4, 2016. REUTERS/Jemima Kelly/File Photo

Warehouses storing bitcoin mining machines stand at a mining facility operated by Bitmain Technologies in Ordos, Inner Mongolia. Photo: Bloomberg

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The city saw 125 companies raise US$36.5 billion, the highest since 2010, according to Refinitiv data
TMT sector accounted for 39 per cent of all funds raised on the back of listing reforms


Hong Kong was easily the world’s top market for IPOs this year, but analysts warn that launch of a new tech board in Shanghai and growing headwinds such as the US-China trade war and Brexit will pose challenges next year.


Hong Kong regains global IPO crown from New York in 2018 thanks to its listing reforms

The city saw 125 companies raise US$36.5 billion, the highest since 2010, according to Refinitiv data TMT sector accounted for 39 per cent of all funds raised on the back of listing reforms

The city saw 125 companies raise US$36.5 billion, the highest since 2010, according to Refinitiv data

TMT sector accounted for 39 per cent of all funds raised on the back of listing reforms