Latest news with #CathyZhang
Yahoo
4 days ago
- Business
- Yahoo
$26.5B IPO Frenzy: Why Global Money Is Suddenly Flooding Into Hong Kong
Hong Kong's equity markets are finally waking upand the numbers speak for themselves. IPO and follow-on deal volume has surged to $26.5 billion so far in 2025, up from just $3.8 billion a year ago. That's the highest total since 2021. Chinese giants are fueling the revival. CATL led with a $5 billion listing in Maynow trading 18% above its Shenzhen counterpart. Xiaomi (XIACY) and BYD (BYDDF) chipped in with more than $11 billion in fresh equity earlier this year. A Hong Kong listing for Shein could be next. For a city that's spent the past few years on the sidelines, this could be the inflection point. Warning! GuruFocus has detected 3 Warning Signs with XIACY. What's driving it? A mix of geopolitics, valuations, and capital rotation. With U.S.-China tensions intensifying, Chinese firms appear to be shifting their fundraising back homeor at least closer to it. There's a broader rebalancing happening in global capital, said James Wang of Goldman Sachs. That shift isn't just about avoiding scrutiny. Investors are also hunting for upside in places where valuations still look attractive. Hong Kong, after years of underperformance, is finally back on the radar. And the momentum is real enough that Morgan Stanley's Cathy Zhang is advising clients to move now while the window's open. Still, it won't be a smooth ride. As Shi Qi at China International Capital Corp. pointed out, this isn't a market rally you can sleepwalk through. But the ingredients are lining up: successful debuts, valuation premiums over mainland shares, and more regulatory support. Pharma name Jiangsu Hengrui briefly traded above its A-shares on debutsomething we haven't seen often. If this continues, more mainland-listed firms may pivot to Hong Kong for their next raise. And for investors, it's a rare chance to front-run a shift that could reshape Asia's capital markets in 2025 and beyond. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
$26.5B IPO Frenzy: Why Global Money Is Suddenly Flooding Into Hong Kong
Hong Kong's equity markets are finally waking upand the numbers speak for themselves. IPO and follow-on deal volume has surged to $26.5 billion so far in 2025, up from just $3.8 billion a year ago. That's the highest total since 2021. Chinese giants are fueling the revival. CATL led with a $5 billion listing in Maynow trading 18% above its Shenzhen counterpart. Xiaomi (XIACY) and BYD (BYDDF) chipped in with more than $11 billion in fresh equity earlier this year. A Hong Kong listing for Shein could be next. For a city that's spent the past few years on the sidelines, this could be the inflection point. Warning! GuruFocus has detected 3 Warning Signs with XIACY. What's driving it? A mix of geopolitics, valuations, and capital rotation. With U.S.-China tensions intensifying, Chinese firms appear to be shifting their fundraising back homeor at least closer to it. There's a broader rebalancing happening in global capital, said James Wang of Goldman Sachs. That shift isn't just about avoiding scrutiny. Investors are also hunting for upside in places where valuations still look attractive. Hong Kong, after years of underperformance, is finally back on the radar. And the momentum is real enough that Morgan Stanley's Cathy Zhang is advising clients to move now while the window's open. Still, it won't be a smooth ride. As Shi Qi at China International Capital Corp. pointed out, this isn't a market rally you can sleepwalk through. But the ingredients are lining up: successful debuts, valuation premiums over mainland shares, and more regulatory support. Pharma name Jiangsu Hengrui briefly traded above its A-shares on debutsomething we haven't seen often. If this continues, more mainland-listed firms may pivot to Hong Kong for their next raise. And for investors, it's a rare chance to front-run a shift that could reshape Asia's capital markets in 2025 and beyond. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Action in Hong Kong Equity Markets Stirs Most Excitement in Years
(Bloomberg) -- Hong Kong's equity capital markets are seeing the most action in years, with multibillion dollar deals lifting the mood and fueling anticipation about more transactions to come. Where the Wild Children's Museums Are Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access LA City Council Passes Budget That Trims Police, Fire Spending 'I don't think we have seen this kind of excitement for Hong Kong and China for a long time,' said Cathy Zhang, head of Asia-Pacific equity capital markets at Morgan Stanley. Initial public offerings and additional share sales in the city have fetched $26.5 billion so far in 2025, compared with just $3.8 billion a year ago and the most since 2021, which was a record year, data compiled by Bloomberg show. Three $5 billion-plus share offerings by Chinese giants have driven the boom. The most recent was battery maker Contemporary Amperex Technology Co. Ltd.'s listing, the biggest worldwide this year. That was preceded by Xiaomi Corp. and BYD Co. selling over $11 billion worth of new stock combined in March. If fast-fashion giant Shein Group Ltd. goes ahead with an IPO in Hong Kong instead of London, it would be yet another high-profile deal for the city. Despite global unrest, trade war threats and persistently sluggish demand in China, investors are clamoring for a piece as valuations are still attractive. 'There's a broader global rebalancing underway, not just in trade flows, but in capital allocation,' said James Wang, head of Asia ex-Japan equity capital markets at Goldman Sachs Group Inc. 'Incrementally, we're seeing capital flow out of the US and into select emerging markets, including India and Hong Kong.' Hong Kong is poised to be a beneficiary of the strained ties between Washington and Beijing, as Chinese companies shift their IPOs to the city, helping to lift sentiment, according to Bloomberg Intelligence strategist Marvin Chen. That view is shared by former Morgan Stanley Asia Chairman Stephen Roach. A large chunk of Hong Kong's pipeline consists of mainland China-traded firms looking to sell shares in the city, encouraged by regulatory support for such deals, and as markets onshore remain slow for fundraising. CATL is rare in that it is trading at a premium to its shares in Shenzhen, having risen about 18% since its Hong Kong introduction in May. Jiangsu Hengrui Pharmaceuticals Co., which raised $1.3 billion in a Hong Kong listing last month, also briefly rose above its A-shares in Shanghai on its debut. This could further encourage China-traded companies to consider listings in Hong Kong. 'The CATL listing is setting positive momentum for the Hong Kong market and we would advise our clients that now is a good time to go ahead with their capital market plans,' said Shi Qi, China International Capital Corp.'s deputy head of capital markets. Still, a note of caution: It won't be a 'straightforward market rally,' she said. (Updates CATL share price, adds chart. A previous version corrected the name of BYD in fourth paragraph to BYD Co. instead of BYD Corp.) YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
5 days ago
- Business
- Bloomberg
Action in Hong Kong Equity Markets Stirs Most Excitement in Years
Hong Kong's equity capital markets are seeing the most action in years, with multibillion dollar deals lifting the mood and fueling anticipation about more deals to come. 'I don't think we have seen this kind of excitement for Hong Kong and China for a long time,' said Cathy Zhang, head of Asia-Pacific equity capital markets at Morgan Stanley.
