
Hong Kong's IPO market is on fire; these 3 factors are driving the boom: HSBC
Beijing is keen to support some Hong Kong-listed red chip companies to list in the mainland, Steven Sun from HSBC Qianhai Securities says valuation gap between A and H shares as well as regulatory considerations are some key factors behind companies' listing plans.

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Forbes
an hour ago
- Forbes
China Market Update: Winning Streak Snapped By Profit Taking
CLN Asian equities closed mixed, as Japan and India outperformed and the US dollar weakened overnight. Hong Kong's four-day winning streak and Mainland China's three-day winning streak both came to an end with profit taking overnight. Both markets bounced around the room on volumes that were well above their 1-year averages. It was very interesting that Southbound Stock Connect volumes accounted for 64% of turnover in Hong Kong today. I can't recall a percentage that high, as Mainland investors poured $673 million into Hong Kong-listed stocks and ETFs, net of selling. Does the high Connect percentage indicate a lack of foreign investor participation? I suspect so, which makes me bullish, as the charts of the Shanghai, Shenzhen, Hang Seng, and Hang Seng Tech all continue to grind higher. So far this year, Southbound buying of Hong Kong stocks is up to $92.86 billion versus 2024's total of $103 billion, 2023's total of only $40.70 billion, and 2022's total of $49.20 billion. Recent outperformers, including pharmaceutical, brokerage, and insurance stocks, were hit with profit taking on no negative news, while mining and energy outperformed. In fact, we had positive news from the National Development & Reform Commission (NDRC) that the third round of funds for the consumption subsidies will be allocated in July. The third round will be financed by the issuance of RMB 200 billion worth of ultra-long-dated Treasury bonds. Hong Kong's most heavily traded stock was brokerage firm Guotai Junan International, which fell -4.32%, after rising +198% yesterday on its cryptocurrency trading approval. Alibaba fell -2.86% though I am not seeing any news. Alibaba will release its annual report after the close, which will give me something to read on my flight home tonight. China Travel gained +85% on reports that Hong Kong tourist numbers were strong during May's Golden Week holiday. Other tourist stocks were up around +1%, though I suspect short sellers got rolled on China Travel's surge. gained +0.23% as founder Richard Liu attends the 'Summer Davos' in Tianjin. Shockingly, there has been little Western media coverage of the event, which makes me suspect something good is occurring. Harvard's Graham Allison stated at the event, 'I would be surprised if in the next week or so we do not see a memorandum of understanding (MOU) coming out of the discussions that have been going on between Bessent and He…,' according to the South China Morning Post. I've not seen that elsewhere, but it would be a significant catalyst. Privately-held robotics company Unitree stated that the firm, founded in 2016 with one employee, now has 1,000 employees and RMB 1 billion in annual revenue. If you didn't catch our Nasdaq bell ringing yesterday, take a look. A Unitree humanoid robot rang the bell! All in all, a quiet night! New Content Read our latest article: Navigating Global Crosswinds: Carbon Markets Respond to Tariff Tactics and Executive Orders Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6


Bloomberg
2 hours ago
- Bloomberg
New World Gets 100% Lender Approval for $11 Billion Refinancing
Distressed Hong Kong builder New World Development Co. has secured written commitments from all banks for a HK$87.5 billion ($11.1 billion) loan refinancing, people familiar with the matter said, bringing it closer to finalizing a critical lifeline just days before a deadline. The next procedural step to formally conclude the transaction is for lenders to sign the loan documents, according to the people. They expect that to happen shortly. Documentation showed that if New World didn't achieve a 100% approval by June 30, the deal could fall through as any collateral pledged would be released and bank commitments canceled.

Business Insider
3 hours ago
- Business Insider
Africa's crude oil exporting network grows with new member nation
A new chapter is unfolding in Africa's energy landscape as the continent welcomes Ethiopia into its community of oil-exporting nations as it makes its debut in the global oil market this September. Ethiopia is set to debut in the global oil market in September, marking its first crude oil exports. This development positions Ethiopia among Africa's oil-exporting nations, such as Nigeria and Angola. Trial production of crude oil has started in the Ogaden Basin, highlighting Ethiopia's resources. This move positions Ethiopia as the newest member of Africa's oil-exporting bloc, alongside established producers such as Nigeria, Angola, Algeria, and Libya, marking a historic milestone in the country's economic development and energy aspirations. The announcement was made by Ethiopian Prime Minister Abiy Ahmed, who confirmed that petroleum exports will begin in September as per Ethiopian media platform, Ethio Negari The planned shipment will be the first crude oil export in Ethiopia's history—a significant turning point for a nation that has long depended on imports to meet its domestic energy needs. Ethiopia's oil prospects Last year, Prime Minister Abiy Ahmed met with officials from Poly-GCL Petroleum Investment Limited—a joint venture between China's state-owned POLY Group Corporation and Hong Kong-based Golden Concord Group—to formally launch crude oil production testing in the Ogaden region. The company reported promising signs of commercial-scale crude oil reserves in the area. The Ogaden Basin, located in Ethiopia's Somali Regional State, has long been believed to hold significant hydrocarbon potential. However, until now, Ethiopia has remained heavily reliant on petroleum imports, spending over $4 billion annually to meet domestic fuel demand. According to state-affiliated Fana Broadcasting, Prime Minister Abiy announced that a trial production of 450 barrels of crude oil would begin, marking a historic first for the country. He added that full-scale crude oil production in the future could help reduce unemployment and ease Ethiopia's ongoing foreign currency shortage. Abiy also stated that Ethiopia expects to generate up to $8 billion annually from natural gas exports once operations reach full capacity. Government officials say the initial shipments of crude will be modest but carry symbolic weight, representing the first step in a broader strategy to develop and monetize Ethiopia's untapped energy resources. Ethiopia's entry into the oil export market comes amid shifting global energy dynamics, as African producers increasingly seek to strengthen intra-continental trade, attract foreign investment, and assert greater influence in OPEC-related discussions.