Financial news
Written by: Yue Yueting
2020-01-02 14:20
Last updated: 2020-01-02 14:21The accounting firm Luo Bingxian estimates that the total amount of Hong Kong's new equity fundraising in 2020 will be between 230 billion and 260 billion yuan, and the number of newly listed companies will be about 180, which is expected to once again rank in the top three in the world.
The bank also pointed out that the amount of funds raised in the Hong Kong IPO market last year was 315.5 billion yuan, an increase of 10% year-on-year. The amount of funds raised topped the list, and a total of 184 new shares were listed during the period.
Huang Weibang (pictured left) expects more companies to go to Hong Kong for listing in the form of a secondary listing. (Photo by Wu Yueting)
Mr. Huang Weibang, the head of Hong Kong's corporate client relationship, estimates that there will be no large unicorns listed in Hong Kong this year, such as Alibaba. As the Brexit and interest rate trends have become clearer, which has helped to stabilize the market, the bank is slightly optimistic about the valuation of new shares. It is expected that the valuation of new shares will be reduced, but the Sino-US trade war may bring uncertainties .
The Wall Street Journal earlier quoted sources as saying that oil company Saudi Aramco plans to seek an international listing in Japan or China this year. Huang Weibang said that Saudi Aramco was not included in the forecast because Saudi Aramco was a customer of the bank.
Expect 2 to 3 new shares to raise more than 10 billion
Hong Kong's economy has fallen into recession and social movements have continued for many months. Huang Weibang believes that local events have a greater impact on companies that are mainly in the retail industry and Hong Kong business, but companies whose main business is not in Hong Kong have only a slight impact. Therefore, Hong Kong continued to win the global fund raising The top of the list. He believes that some Chinese listed stocks listed in the United States, after seeing Ali's listing in Hong Kong, also consider coming to Hong Kong for a secondary listing, but there may not be large new shares with more than 100 billion fundraising. It is expected that about 2 to 3 companies will raise funds. The amount is over 10 billion yuan.
The China Securities Regulatory Commission announced in November to promote the full circulation of H shares, no longer set restrictions on the company's size and industry, nor set a limit on the number and completion time. Huang Weibang said that in the past, mainland companies would reorganize the company, convert their shares into red chips and then list them in Hong Kong. The procedures are more complicated, and the full circulation of H shares will make them more open. It is estimated that in the second half of 2020, there will be the first mainland company to use H Shares listed in Hong Kong.
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