The past week was a busy one for Hong Kong's IPO market, which welcomed the largest global IPO this year. Since the start of the year, Hong Kong's IPO fundraising has exceeded HK$76 billion ($9.7 billion), a more than sevenfold year-on-year increase and reaching nearly 90 percent of last year's total IPO fundraising amount, the Hong Kong Special Administrative Region (HKSAR)'s Financial Secretary Paul Chan Mo-po said on Sunday.
Chan made the remarks after leading battery maker Contemporary Amperex Technology Co held an IPO on the Hong Kong Stock Exchange on May 20, with its shares rising more than 16 percent on the first day.
Chan noted that recently, several major foreign financial institutions visiting the Chinese mainland have expressed optimism about China's development prospects and stated their commitment to further engaging in the mainland market and increasing investment in China.
As the "super connector" between the mainland and the global market, the HKSAR is seizing opportunities in this era, Chan said, noting that last week, two major financial forums were held in the city, with many seasoned foreign investors stating they will increase asset allocation in the mainland and Asia through Hong Kong.
Additionally, the inaugural International Forum for Patient Capital hosted by the Hong Kong Investment Corp on May 22 brought together patient capital institutions from 15 countries and regions, including Europe, the US, and Japan, which are generally optimistic about the technological innovation and vast application markets in China and Asia. These institutions believe that now is an opportune time for investment and hope to connect with more promising tech companies through the Hong Kong Investment Corp, according to Chan.
Furthermore, the HKSAR is committed to enhancing its advantages as a preferred location for establishing international headquarters, Chan said. As the regime on company re-domiciliation officially took effect on May 23, allowing companies incorporated outside Hong Kong to apply for re-domiciliation in Hong Kong in a more convenient and cost-effective manner, some major international insurance companies responded by announcing re-domiciliation in Hong Kong. Market observers believe that companies from other industries, such as shipping, may also gradually re-domicile in Hong Kong, the HKSAR financial chief said.
Chan also vowed to continue to safeguard the security of Hong Kong's financial market amid a complex and volatile geopolitical and economic landscape. Through years of collaborative efforts by the HKSAR government, regulatory authorities and the industry, the region's financial system has built strong buffers and resilience, capable of withstanding various external risks and shocks, the financial secretary said.
Last week, the international rating agency Fitch published a report affirming the HKSAR's robust credit fundamentals, maintaining its credit rating with a "stable" rating outlook, according to Chan.
The outstanding performance of Hong Kong's stock market this year, and the increasing number of domestic and international companies establishing international headquarters, research and development centers and regional offices in the HKSAR, reflect the confidence of global investors and businesses in the city, he said.
Meanwhile, despite current geopolitical challenges, China maintains a stable and predictable policy environment, continues to promote high-level opening-up and achieves ongoing breakthroughs in technological innovation, green transformation and the digital economy, accelerating development and serving as a vital source of global growth. Deepening ties with the mainland is a significant advantage for the HKSAR's long-term development, according to Chan.
Amid profound changes in the global landscape, the HKSAR will continue to adapt flexibly, strengthening ties with traditional markets while actively exploring emerging markets such as the Global South, further highlighting its roles as a "super connector" and "super value-adder," Chan said.
(Source: Global Times)