Ping An Securities becomes the latest mainland brokerage seeking to tap Hong Kong’s equity market
As the mainland continues to call time out on new IPOs, mainland securities firms will continue to look towards fund raising in Hong Kong, analysts say
Ping An Securities, the brokerage arm of China’s second-largest insurer, is the latest of a string of mainland securities companies seeking to list in Hong Kong in an effort to raise funds and boost their international exposure.
Ping An Securities and other mainland brokerages are looking to Hong Kong in spite of the weak market performance this year as the primary listing channels on the mainland have effectively been shut.
“The mainland has suspended IPO approvals in recent months and there are long queues of mainland companies waiting for a listing. The simple solution for these listing hopefuls is to have an IPO in Hong Kong,” said Benny Mau, chairman of Hong Kong Securities Association.
“Besides Ping An Securities, there are currently several mainland securities firms also planning to have IPOs in Hong Kong in the following months,” Mau said.
On the mainland, the China Securities Regulatory Commission controls the pace of new listings and has imposed suspensions eight times in the past two decades during periods of depressed markets or in response to market malpractices.
