[ad_1]
“However Hong Kong’s monetary market has a stable basis … and is internationalised, complete and rising in nature.”
Previously two months, web customers over the border have slammed the town’s standing as a monetary hub. They in contrast Central’s Trade Sq., which homes the town’s bourse, to historic vacationer sights akin to the location of the Terracotta Military in Shaanxi.
The assaults got here after monetary info supplier Refinitiv revealed market information exhibiting proceeds generated from IPOs in Hong Kong had hit a 20-year trough. It ranked the inventory market ninth in a world listing for the primary half of 2023, one spot larger than final 12 months however behind the third place on the 2022 listing.
The semi-annual International Monetary Centres Index, produced by suppose tanks China Improvement Institute and Z/Yen Companions, put Hong Kong in fourth place this 12 months, with Singapore, London and New York respectively coming third, second and first.
Hong Kong ranks ninth globally for IPOs as fundraising hits 20-year low
Hong Kong ranks ninth globally for IPOs as fundraising hits 20-year low
Official native figures confirmed the monetary sector accounted for 22.4 per cent of the town’s gross home product, up from 21.3 per cent in 2021.
Frederick Ma Si-hang, chairman of insurer FWD Group Holdings, additionally raised eyebrows at a convention on Tuesday when he referenced the claims that Hong Kong’s standing as a global finance hub was a factor of the previous.
He later instructed the Put up: “It’s not but useless, and continues to be alive.”
Ma, who served as treasury minister between 2002 and 2007, additionally argued the inventory market was simply certainly one of 5 pillars holding up the town’s monetary market, alongside bonds, asset administration, banking and insurance coverage.
Bernard Chan, chairman of the Our Hong Kong Basis suppose tank, on Friday argued that the claims from web customers on the mainland shouldn’t be taken severely.
Asia’s first Saudi ETF beneficial properties in debut in milestone for China-Center East ties
Asia’s first Saudi ETF beneficial properties in debut in milestone for China-Center East ties
However he acknowledged that the native economic system was below stress, since its efficiency was intently tied to the remainder of the nation, which is presently experiencing a slowdown.
“Hong Kong must diversify into new markets on high of specializing in its financial mainstay, China,” Chan stated.
Ceajer Chan Ka-keung, a former treasury minister and now adjunct professor of finance on the Hong Kong College of Science and Expertise, stated he disagreed that the town had misplaced its enchantment as a global monetary hub.
“Hong Kong’s monetary market is at a vital level, however it’s doing OK,” he stated. “The query is find out how to make long-term fundraising actions sustainable towards the backdrop of geopolitics.”
Ma additionally stated Hong Kong’s bourse was not the one one struggling amid present market circumstances, pointing to the macroeconomic problem posed by rising rates of interest.
Hong Kong has hosted 61 IPOs thus far this 12 months, elevating US$5.3 billion. Final 12 months, the town had 90 listings that raised US$13.4 billion.
Ma stated Hong Kong had fared higher than Singapore over the primary 11 months of 2023. The variety of IPOs the town state hosted in the identical interval fell to 6, down by half over final 12 months. The listings this 12 months have raised US$34.94 million, down by 92 per cent over the identical interval final 12 months.
America final 12 months hosted 181 IPOs, towards 146 thus far this 12 months, which raised US$19.3 billion, a rise of 151.9 per cent, he famous.
The business chief stated Hong Kong additionally loved extra strong insurance coverage and bond markets in contrast with regional rivals.
Hong Kong’s Paul Chan says exports more likely to face important hurdles in 2024
Hong Kong’s Paul Chan says exports more likely to face important hurdles in 2024
Gross premiums generated by the final insurance coverage sector in Hong Kong stood at US$8 billion in 2022, in contrast with US$3.6 billion recorded by Singapore, he famous.
“When one pillar is weak, it doesn’t imply [the city’s] worldwide monetary centre standing has gone,” Ma stated. “Nonetheless, Hong Kong can’t afford to be complacent as many markets are eyeing the identical pie.”
Ma referred to as on the federal government to give attention to attracting and retaining expertise, in addition to “perfecting” guidelines and procedures governing IPOs within the mainland, Center Japanese and Asean markets.
The Affiliation of Southeast Asian Nations includes the Philippines, Indonesia, Malaysia, Singapore, Brunei, Thailand, Vietnam, Cambodia, Laos and Myanmar.
HKEX, LME relish ‘unbelievable alternatives’ after profitable nickel lawsuit
HKEX, LME relish ‘unbelievable alternatives’ after profitable nickel lawsuit
Discussing the position of the Hong Kong Exchanges and Clearing, Ma stated: “There’s a must strike a steadiness between vetting IPOs in a well timed method and gatekeeping.”
College scholar Chan stated Hong Kong ought to give attention to attracting extra IPOs and the bourse ought to diversify its merchandise.
“Getting extra IPOs from the Center East and Asean is the precise route, however China ought to stay its core market,” he stated.
Chan advised that the federal government make public extra particulars about its collaboration with the China Securities Regulatory Fee to assist pave the best way for extra mainland companies to go public within the metropolis.
[ad_2]
Source link