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Hong Kong bound for top of IPO charts with listing reforms, outgoing SFC chair says
In a farewell media briefing, Tim Lui also says he is grateful to see the SFC owning its own permanent office space
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The outgoing chairman of Hong Kong’s Securities and Futures Commission (SFC) believes the city will reassert itself as a world-leading venue for new share offerings, as listing reforms expected to be unveiled on Friday will attract more mega deals.
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“It is highly likely that Hong Kong can reach a higher ranking in the initial public offering [IPO] market worldwide, as we have over 100 listing candidates planning to go public, including many big players,” Tim Lui Tim-leung said in his last media briefing as chairman on Thursday.
“If we have a few more mega IPOs like Midea Group in the coming months, Hong Kong can regain a top position in the IPO market.”
The city’s stock exchange was the world’s top IPO market seven times between 2009 and 2019, but has suffered from a dry spell in recent years because of the high interest rate environment and low valuations of Chinese stocks.
Home appliances maker Midea Group raised US$4.6 billion in Hong Kong last month after an overwhelming response from investors.
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With that boost, total funds raised in the first nine months of the year doubled to US$7.14 billion compared with 2023, according to data compiled by London Stock Exchange Group. That elevated Hong Kong to fifth on the global IPO league table in September, from 13th in June.
The SFC and bourse operator Hong Kong Exchanges and Clearing are likely to announce new listing reforms on Friday after they were mentioned by Chief Executive John Lee Ka-chiu in his policy address on Wednesday, Lui said. Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said in a separate briefing on Thursday that the details will be released this week.
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