Hong Kong beats India China: In a major coup, Hong Kong has become Asia’s number one market in terms of fund raising, leaving behind both China and India. A record share sale of more than $73 billion has taken place in the Hong Kong stock market this year through initial public offerings (IPOs), placements and block trades. This is the first time since 2013 that Hong Kong has reached the top in this matter. The main reasons behind this rise are the big deals of Chinese companies and the increasing confidence of investors.
Chinese companies gave impetus to Hong Kong
Hong Kong’s stock market was moving slowly till some time ago, but this year it has gained tremendous momentum. According to Bloomberg report, this rise in Hong Kong’s stock market has been mainly boosted by Chinese companies. Despite the tariffs imposed by America, these companies made big deals to expand their reach globally.
For example, Chinese battery giant Contemporary Amperex Technology (CATL) raised $5.3 billion in the world’s second-largest listing. Besides, electric vehicle manufacturer BYD and smartphone company Xiaomi Corp also raised more than $5 billion in share placements.
Hong Kong number 1 in Asia, India second
Hong Kong has become the market with the highest fund raising in Asia for the first time since 2013. Even at the global level, Hong Kong now ranks second just behind America. James Wang of Goldman Sachs Group has expressed hope that this volume will continue to grow further. According to the Hong Kong Stock Exchange, Hong Kong’s IPO pipeline is strong, with approximately 300 companies waiting to list their shares. Syngenta Group and A.S. Big IPOs like Watson Group are in the queue, due to which the Hong Seng Index has gained 29.5 percent this year.
India is also not behind in deal making
India ranks second in Asia in terms of fund raising. Record breaking deal making has also been seen in India. Manan Lahoti of law firm Cyril Amarchand Mangaldas said that the number of billion-dollar-plus deals in the Indian market has increased rapidly.
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In India, IPOs have set a record for the second consecutive year, with collections of more than $20 billion, driven by increasing investment from domestic mutual funds and retail investors. Existing shareholders are also selling their holdings through block trades. This reflects the depth and resilience of India’s market, which has achieved the second largest position after Hong Kong.
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