AFP – Hong Kong’s stock exchange reported record profits and trading turnover yesterday, after a bumper IPO that may signal a turnaround in the city’s fortunes as a listing hub.
Profit attributable to shareholders rose 10 per cent to HKD13.1 billion (USD1.68 billion) in 2024 while daily turnover for the cash equities market peaked at USD80 billion, Hong Kong Exchanges and Clearing (HKEX) said in a statement.
The Chinese finance hub saw a prolonged slump in initial public offerings since 2020, with mega-companies pausing their listing plans in light of Beijing’s regulatory crackdown.
But the USD4 billion IPO of Chinese appliance maker Midea in September – the largest since 2021 – fuelled hopes that Hong Kong could reclaim the crown as the world’s top listing destination.
Chief executive Bonnie Chan, who took over last May and is the first woman to lead the stock exchange, said HKEX had made “significant strategic progress” last year.
“The improved macro backdrop supported renewed vibrancy and robustness of our markets, which was reflected in the largest IPO in Hong Kong since 2021 as well as an all-time record trading turnover,” Chan said.
There were 71 IPOs, raising USD11.3 billion last year – far below pre-pandemic peaks – but listing activity “noticeably stepped up momentum in the second half of the year as a result of China monetary and fiscal measures,” Chan added.
Revenue and other income also grew nine per cent to USD2.9 billion, a fresh record.
Chan said Hong Kong’s fundraising and secondary markets will be buoyed by “stimulative policies in mainland China and interest rate cuts in other major markets” this year.
Chinese battery giant CATL, which provides more than a third of electric vehicle (EV) batteries sold worldwide, applied this month to list in Hong Kong, which analysts said can fetch more than USD5 billion.
Shanghai-based toymaker Bloks raised USD215 million in its Hong Kong debut last month, while the upcoming IPO of Chinese tea drink company Mixue Group has seen strong demand, according to Bloomberg.
Hong Kong’s Finance Chief Paul Chan announced a programme on Wednesday to fast-track the listing of specialist technology and biotech firms, particularly those already listed in China.
The stock exchange also implemented a long-awaited change in September to keep markets open during typhoons, matching the practice of major exchanges worldwide.
The city’s benchmark Hang Seng Index climbed to a three-year high this week, thanks in part to a recent surge in Chinese tech companies.
