Latest news with #HongKongExchangesandClearingLtd
CNBC
18-05-2025
- Business
- CNBC
Some Chinese companies eye Singapore listings to expand markets amid trade war
At least five companies from mainland China or Hong Kong are planning IPOs, dual listings, or share placements in Singapore in the next 12 to 18 months, four sources said, as Chinese firms look to expand in Southeast Asia amid global trade tensions. The companies include a Chinese energy company, a Chinese healthcare group, and a Shanghai-based biotech group, said the sources, who have direct knowledge of the matter, but declined to be named or to name the firms as the plans are not finalised. The listings would give a boost to Singapore Exchange Ltd (SGX),which, despite being a popular venue for yield plays such as real estate investment trusts, has been struggling to attract mega listings and bolster trading volumes. SGX hosted just four initial public offerings in 2024, according to its website. That compares with 71 new company listings recorded by its rival regional bourse Hong Kong Exchanges and Clearing Ltd. Chinese companies are looking to tap the Singaporean bourse as they look to enter, or expand business in, Southeast Asia amid a trade war with the United States, Jason Saw, investment banking group head at CGS International Securities, said. U.S. President Donald Trump imposed tariffs of 145% on imports of Chinese goods, and China in turn raised tariffs on U.S. goods to 125%, before the two sides agreed a 90-day pause last weekend. But uncertainty remains, given the time limit and the Trump administration's unpredictability. Enquiries about listings on SGX "shot through the roof" after Trump ramped up his trade actions against China, Saw said. "For the next years and decades, gateways from China to the world are going to be more important," said Pol de Win, senior managing director and head of global sales and origination at SGX. "Singapore is an important gateway, whether it's trade (or) business activity from China to the outside world, and a listing in Singapore is an important component of that." De Win did not mention the listing plans of the Chinese and Hong Kong firms. CGS International, a unit of state-owned brokerage China Galaxy Securities, is working with at least two China-based companies to list on the SGX as early as this year, according to Saw. He declined to name the companies. Some of the mainland Chinese and Hong Kong companies could raise around $100 million via primary listings in Singapore, said one of the sources. SGX is usually not the first choice for Chinese companies eyeing an offshore market debut. Most of them prefer Hong Kong due to Beijing's support and a large pool of institutional and retail investors more familiar with Chinese brands. Beijing's efforts to boost ties with Southeast Asia, amid escalating tension with Washington, have, however, encouraged some Chinese companies to increase their presence in the region, capital market advisers said. The listing plans in Singapore come after the city-state in February announced measures to strengthen its equities market, which included a 20% tax rebate for primary listings, and vowed to unveil a next set of measures in the second half of 2025. The initiatives are set to boost interest in the local IPO market, said Ringo Choi, EY's Asia Pacific IPO Leader, adding that Singapore's "political stability and neutral stance" on geopolitical matters should appeal to companies. Not many, however, see Singapore closing its gap with Hong Kong in equity listings in the near future, due to factors including Singapore's relatively conservative investors and stricter listing requirements. "You need to make it easier for companies, especially technology companies, to list," said the managing director of a Singapore-based multinational software company, who declined to be named as he was not authorised to speak to the media. "Most of the startups in the region are headquartered in Singapore, so this should be the place they list."
New Straits Times
18-05-2025
- Business
- New Straits Times
Some Chinese companies eye Singapore listings to expand markets amid trade war
SINGAPORE: At least five companies from mainland China or Hong Kong are planning IPOs, dual listings, or share placements in Singapore in the next 12 to 18 months, four sources said, as Chinese firms look to expand in Southeast Asia amid global trade tensions. The companies include a Chinese energy company, a Chinese healthcare group, and a Shanghai-based biotech group, said the sources, who have direct knowledge of the matter but declined to be named or to name the firms as the plans are not finalised. The listings would give a boost to Singapore Exchange Ltd (SGX), which, despite being a popular venue for yield plays such as real estate investment trusts, has been struggling to attract mega listings and bolster trading volumes. SGX hosted just four initial public offerings in 2024, according to its website. That compares with 71 new company listings recorded by its rival regional bourse Hong Kong Exchanges and Clearing Ltd. Chinese companies are looking to tap the Singaporean bourse as they look to enter, or expand business in, Southeast Asia amid a trade war with the US, Jason Saw, investment banking group head at CGS International Securities, said. US President Donald Trump imposed tariffs of 145 per cent on imports of Chinese goods, and China in turn raised tariffs on US goods to 125 per cent, before the two sides agreed a 90-day pause last weekend. But uncertainty remains, given the time limit and the Trump administration's unpredictability. Enquiries about listings on SGX "shot through the roof" after Trump ramped up his trade actions against China, Saw said. "For the next years and decades, gateways from China to the world are going to be more important," said Pol de Win, senior managing director and head of global sales and origination at SGX. "Singapore is an important gateway, whether it's trade (or) business activity from China to the outside world, and a listing in Singapore is an important component of that." De Win did not mention the listing plans of the Chinese and Hong Kong firms. GROWING INTEREST CGS International, a unit of state-owned brokerage China Galaxy Securities, is working with at least two China-based companies to list on the SGX as early as this year, according to Saw. He declined to name the companies. Some of the mainland Chinese and Hong Kong companies could raise around US$100 million via primary listings in Singapore, said one of the sources. SGX is usually not the first choice for Chinese companies eyeing an offshore market debut. Most of them prefer Hong Kong due to Beijing's support and a large pool of institutional and retail investors more familiar with Chinese brands. Beijing's efforts to boost ties with Southeast Asia, amid escalating tension with Washington, have, however, encouraged some Chinese companies to increase their presence in the region, capital market advisers said. The listing plans in Singapore come after the city-state in February announced measures to strengthen its equities market, which included a 20 per cent tax rebate for primary listings, and vowed to unveil a next set of measures in the second half of 2025. The initiatives are set to boost interest in the local IPO market, said Ringo Choi, EY's Asia Pacific IPO Leader, adding that Singapore's "political stability and neutral stance" on geopolitical matters should appeal to companies. Not many, however, see Singapore closing its gap with Hong Kong in equity listings in the near future, due to factors including Singapore's relatively conservative investors and stricter listing requirements. "You need to make it easier for companies, especially technology companies, to list," said the managing director of a Singapore-based multinational software company, who declined to be named as he was not authorised to speak to the media.
Reuters
30-04-2025
- Business
- Reuters
Hong Kong exchange posts 37% rise to record Q1 profit as trading soars
HONG KONG, April 30 (Reuters) - Hong Kong's bourse operator on Wednesday posted a 37% jump in first quarter profit to record its best ever quarterly performance, helped by a sharp increase in securities trading and listing activities in the Asian financial hub. The profit attributable to shareholders of Hong Kong Exchanges and Clearing Ltd (HKEX) ( opens new tab rose to HK$4.08 billion ($526 million) in the March quarter, up from HK$2.97 billion a year ago, its earnings statement showed. The exchange's cash market headline average daily trading volume, a key source of revenue, reached a record quarterly high of HK$242.7 billion in the first quarter, more than double that of the year-ago period. During the quarter, the exchange saw 17 company listings, raising a combined HK$18.7 billion, nearly four times that of the same period last year, HKEX said in its earnings statement. The number of initial public offering (IPO) applications filed with the exchange increased to 120 as at March 31, 2025, up from 84 at end-December 2024, with 73 new applications submitted during the quarter, it added. HKEX Chief Executive Bonnie Chan said the exchange would continue to leverage its China advantage, and expand connectivity with global markets to "remain resilient against macro volatility". Hong Kong is the main destination for mainland Chinese firms looking to raise capital offshore, and bankers have said that mainland firms are accelerating plans to raise fresh funds offshore. ($1 = 7.7574 Hong Kong dollars)
Zawya
27-02-2025
- Business
- Zawya
Hong Kong bourse logs 10% profit jump as trading turnover and IPOs surge
HONG KONG - Hong Kong's bourse operator posted a 10% rise in annual profit, helped by sharp increases in trading turnover and new company listings, and said it was optimistic that a pickup in Chinese economic activity would help its prospects. Recent years have seen the exchange's performance hampered by slow growth in China's economy, regulatory tightening that kept a lid on companies' fundraising outside mainland China as well as geopolitical tensions. But stock markets in mainland China and Hong Kong have rallied in recent months after Beijing announced a slew of stimulus measures in the second half of last year to revive the economy. Profit attributable to shareholders of Hong Kong Exchanges and Clearing Ltd (HKEX) rose to HK$13.05 billion ($1.7 billion) in 2024, in line with an LSEG consensus estimate. HKEX Chief Executive Bonnie Chan, who took the helm last year, said in an earnings statement geopolitical and macroeconomic developments will likely continue to impact markets this year. "However, there are also encouraging signs of economic revitalisation, with stimulative policies in Mainland China and interest rate cuts in other major markets providing renewed vibrancy to Hong Kong's fundraising and secondary markets." The bourse's average daily turnover of equity products, a key source of revenue, posted a 29% rise to HK$120 billion. The amount traded via the "southbound connect" - investments coming from the mainland to Hong Kong - surged 55% to HK$48.2 billion. Its cash equities market hit a monthly record of HK$620.7 billion in turnover in October, the exchange said. Hong Kong, the main destination for mainland Chinese firms looking to raise capital offshore, saw 71 new listings raise a combined HK$88 billion last year, a 90% increase over 2023. That trend looks set to continue, helped by a 17% jump in the main Hong Kong index so far this year. Bankers have said mainland firms are accelerating plans to raise fresh funds offshore, tapping into a rebound in investor sentiment fuelled by Beijing's increased support for private firms and the popularity of DeepSeek's AI models. Offshore equity capital markets deals involving Chinese companies this year totalled $3.3 billion as of last week, more than six times the amount in the same period last year, Dealogic data shows. Chan said the bourse had worked its listing framework throughout last year to attract companies. Changes include a shorter timeframe for the application process, a new treasury share regime for issuers and a consultation paper on proposals to reform the IPO price discovery process. Shares in HKEX were down 1% in the afternoon trade, in line with the broader market. ($1 = 7.7758 Hong Kong dollars)
Reuters
27-02-2025
- Business
- Reuters
Hong Kong exchange's 2024 profit rises 10% on higher trading revenues
HONG KONG, Feb 27 (Reuters) - Hong Kong's bourse operator reported on Thursday a 10% rise in profit in 2024, beating forecasts, bolstered by a sharp jump in trading revenues after the announcement of China economic stimulus measures boosted investor sentiment. The profit attributable to shareholders of Hong Kong Exchanges and Clearing Ltd (HKEX) ( opens new tab rose to HK$13.05 billion ($1.68 billion) last year from HK$11.86 billion in 2023, according to its earnings statement. The profit was ahead of a HK$12.96 billion average forecast from analysts compiled by LSEG. ($1 = 7.7758 Hong Kong dollars)
