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Capital Markets

Hong Kong is the Capital Raising Venue of Choice

Capital Markets

Hong Kong is the world’s equity funding leader. In 2015, total equity funds raised through IPOs in Hong Kong amounted to US$33.6 billion. The Stock Exchange of Hong Kong (SEHK) was not only the top stock exchange for IPOs for three consecutive years from 2009 to 2011, it also maintained top five ranking in the global IPO market for the past decade.

Hong Kong is Mainland China’s international equity funding centre. Shares of Mainland China enterprises listed in Hong Kong take the form of H-shares, red chips and Mainland private enterprises.

Red chips are enterprises that are incorporated outside of Mainland China but are controlled by Mainland entities. As at end 2015, 145 red chips were listed in Hong Kong, with a combined market capitalisation of US$662 billion or 20.9% of SEHK’s total market capitalisation.

As the world’s second largest importer, Mainland China is one of the most promising markets for most major global corporations. Hong Kong has become a preferred listing place for international corporations that sell into the Mainland market. These companies benefit from the familiarity of Mainland households with their products and receive high valuation in listing.

Hong Kong is fast becoming the leading fundraising market for world mineral and exploration companies. As at end June 2013, the market capitalisation of resources companies listed on the SEHK was about US$390 billion, accounting for 14% of SEHK’s equity market capitalisation and a 17-fold increase from US$23 billion in 2002.

InvestHK has helped capital raising firms establish a presence in Hong Kong. To find out more, contact the Financial Services team.

Fast Facts

  • World largest IPO centre, raising USD33.6 billion in 2015
  • Asia’s 4th largest stock market and 8th in the world in terms of market capitalisation
  • Mainland enterprises (i.e. H-shares, red chips and private enterprises together) constituted about 62% of the total market capitalization in 2015

Want to know more?

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Contact Priscilla Law

Head of Financial Services

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