Summary of HKEx Fundraising Activity Report

Hong Kong Exchanges and Clearing Limited (HKEx) is witnessing a rebound in fundraising activity, bolstered by a strong IPO pipeline and increased follow-on fundraising efforts, as reported by CEO Bonnie Chan. Key highlights from the 2024 interim report include:

Fundraising Growth:

In the second quarter, 18 companies raised a total of HK$8.6 billion (approximately $1.1 billion), reflecting a 50% increase in new listings and a 79% rise in funds raised compared to the previous quarter.

Active IPO Pipeline:

There have been 43 initial public offerings (IPOs) so far this year, with around 100 more companies waiting to be listed, indicating a diverse and promising pipeline.

Follow-on Fundraising:

Chan emphasized that evaluating Hong Kong’s fundraising performance solely based on IPOs is overly simplistic. The exchange has also facilitated significant follow-on fundraising, allowing listed companies to raise over $20 billion through additional financing and convertible bonds.

Investor Participation:

While U.S. investor participation in large deals has been limited, Greater China investors have remained active, highlighting the ongoing interest in Hong Kong's market.

Market Challenges:

Despite a challenging environment characterized by high U.S. interest rates and regulatory scrutiny, HKEx has performed well as a fundraising center.

Strategic Support:

The positive results align with China's recent capital market measures aimed at supporting listings for leading mainland companies in Hong Kong.

Record Financial Performance:

HKEx reported record highs in revenue and profit for the second quarter, with a 9% year-over-year profit increase to HK$3.16 billion, showcasing a strong start for the new leadership team.

Overall, the report reflects a cautiously optimistic outlook for and the broader fundraising landscape in Hong Kong, driven by a robust IPO environment and effective follow-on fundraising efforts.