Hong Kong must spread its wings and look beyond mainland Chinese IPOs
intial public offering (IPO) tables , but too many of its listings are Chinese. If the city wants to re-establish itself as Asia's financial hub, it needs to be more than a conduit for mainland capital.
In the first half of this year, 280 companies filed to go public in Hong Kong, an all-time high. The city raised US$13.9 billion, beating Nasdaq (US$9.2 billion) and the New York Stock Exchange (US$7.8 billion), according to figures published by KPMG earlier this month. However, much of this momentum is built on a narrow base of Chinese firms.
Recent listings have been led by mainland Chinese companies seeking to raise capital in a currency
pegged to the US dollar , beyond the reach of domestic capital controls – a key advantage as they look to fund overseas expansion amid weak demand at home.
That includes battery maker CATL, which
raised US$5.2 billion in Hong Kong in May. Singapore-based online retailer Shein has also reportedly filed for a Hong Kong IPO after its efforts to list in London
failed to gain traction
About 47 of the companies in Hong Kong's record IPO pipeline are already listed on mainland exchanges such as Shanghai or Shenzhen. With US-China tensions high amid US President Donald Trump's tariff war, Hong Kong has become the default offshore venue for Chinese companies
seeking global capital
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