HKEX CEO expresses cautious optimism about Hong Kong IPOs signaling a rebound.

• During the quarter ended in June, HK$8.6 billion was raised through IPOs, which represents a 79% increase in funds raised compared to the previous quarter, according to the exchange's 2024 interim report.
• Bonnie Chan, CEO of HKEX, contended that Hong Kong's robust IPO pipeline and follow-on fundraising demonstrate its strength as a fundraising hub.

The fundraising activity in Hong Kong is recovering, as evidenced by a robust IPO pipeline and supplementary follow-on fundraising, as stated by CEO Bonnie Chan.

In the second quarter, 18 companies raised a total of 8.6 billion Hong Kong dollars ($1.1 billion), which is a 50% increase in new listings and a 79% increase in funds raised, as stated in the company's 2024 interim report.

On Wednesday, Emily Chan Tan of CNBC stated that there have been 43 initial public offerings this year, and many more are expected to come.

The interim results and the robustness of the "China story" have bolstered the exchange's "cautiously optimistic" perspective, she stated.

The CEO contended that assessing Hong Kong's success solely as a fundraising center through IPOs is too limited.

This year, we have supported a lot of follow-on fundraising for companies listed on our exchange through additional follow-on financing and convertible bond issuance, Chan stated.

These follow-on offerings have enabled companies listed on the exchange to raise over $20 billion, which is significant, and have attracted investors from all around the world, she stated.

While investors from Greater China have continued to participate in major deals in Hong Kong, U.S. investors have largely stayed away from the largest transactions in the region, according to a June report by Preqin, an alternative asset research firm.

For years, the financial hub city in Asia has faced challenges with its listing activity due to various factors such as high U.S. interest rates, slow economic growth, increased regulatory scrutiny, and heightened tensions with the U.S.

Although HKEX could take further steps to increase IPO activity, Chan stated that Hong Kong has performed well as a fundraising hub this year.

Beijing is concentrating on boosting the growth of venture capital, which has led to the introduction of capital market measures in Hong Kong in April.

HKEX reported that revenue and other income reached record highs in the second quarter, with profit increasing by 9% year over year to HK$3.16 billion. Trading volume in the securities market has also increased since March.

In March, Chan became HKEX's CEO, and on April 24, Carlson Tong Ka-Shing was appointed as the exchange's chairman, marking a strong start for both leaders.