Latest news with #R450bn
IOL News
3 days ago
- Business
- IOL News
Hong Kong to regain IPO crown this year, say PwC and Deloitte
Hong Kong is expected to lead the world in initial public offering (IPO) financing this year. Image: AFP Hong Kong is expected to lead the world in initial public offering (IPO) financing this year despite uncertainty from geopolitical tensions and trade tariffs, accountancy giant PwC said on Wednesday. The Chinese financial hub's capital market has rebounded strongly this year, with dozens of Chinese companies piling into the city to raise overseas capital despite regulatory pressure from Beijing and uncertainty over its national security laws. PricewaterhouseCoopers (PwC) said its statistics suggest nearly 100 companies will raise at least HK$200 billion (R450bn) in Hong Kong this year. It said Hong Kong's IPO wave has benefited largely from policy support from the Chinese government and optimised listing rules by Hong Kong regulators that include streamlining approval processes. "The improved market liquidity and rising international investor demand for core Chinese assets also drove market activity," PwC's Hong Kong capital markets leader Eddie Wong said in a note. The Hong Kong stock exchange welcomed 44 IPOs by the end of June, according to PwC. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading "We expect 2025 to be the most active fundraising year for IPOs in the past four years," said Diamantina Leong, PwC's Hong Kong capital markets services partner. PwC said total proceeds raised in Hong Kong jumped 701% to HK$107.1bn compared to the same period last year. In comparison, the New York Stock Exchange and Nasdaq have raised HK$55.3bn and HK$71.9bn in IPOs, respectively, so far this year, it said. Hong Kong's IPO boom is expected to continue into the first half of next year, Wong told reporters at a presentation. Data from the Hong Kong stock exchange showed it is processing more than 170 listing applications. "We expect strong momentum to continue, supported by several mega deals," Wong said. Many of the world's biggest fund-raisings by Chinese companies, including battery giant CATL, pharmaceutical firm Jiangsu Hengrui and soy sauce maker Foshan Haitian, kept up the buzz in Hong Kong's capital markets. Consulting firm Deloitte also forecast in a June report that Hong Kong would be the IPO leader this year, although its analysts warned that "adverse geopolitical or macroeconomic disruptions" could constrain optimism. Chinese e-commerce titan Shein is switching to Hong Kong to complete its debut after failing to list in New York and London, Bloomberg reported this year. Hong Kong hopes to become the preferred listing platform for international companies, "especially those that find it challenging to access capital markets in the US or Europe", the city's financial secretary Paul Chan said last month. AFP
Zawya
25-02-2025
- Business
- Zawya
South Africa: SACP rejects proposed VAT hike, urges tax system overhaul
The South African Communist Party (SACP) has fully backed SARS commissioner Edward Kieswetter's proposal for National Treasury to invest in SARS to recover an estimated R800bn in uncollected revenue, rather than raising taxes. Their support was confirmed at the party's Political Bureau meeting over the weekend, amid public outrage over proposed tax hikes, including a significant VAT increase, which contributed to the unprecedented delay of the Budget Speech. The party said alternatives to a VAT increase should include stricter capital regulation, tackling illicit financial flows, and addressing tax avoidance by multinationals and offshore-listed firms. Progressive taxes, such as a capital transactions tax and wealth tax, should be implemented. Proposed tax reform solutions Kieswetter recently highlighted that the 2018 VAT increase did not significantly boost revenue, suggesting that enhancing SARS's capacity would improve tax compliance and broaden the tax base. He noted that the uncollected taxes include approximately R450bn identified through theoretical modeling and over R300bn from outstanding tax returns. In a statement, the SACP noted that corporate income tax rates have been drastically slashed since 1994, leading to a sharp decline in their contribution to national tax revenue, far outweighed by the disproportionate contributions of VAT and personal income tax. "As part of a comprehensive fiscal overhaul, the most recent 1% reduction in corporate income tax should be reversed to restore much-needed resources to the national fiscus," it said. To this end, a KPMG report shows that South Africa's corporate income tax (CIT) rate has decreased from approximately 50% in the early 1990s to 27% in 2022. The most recent reduction, from 28% to 27% in 2022, was implemented to enhance the country's competitiveness and attract investment. Call for corporate tax reversal Due to the proposed VAT increase, the SACP Political Bureau has called for an urgent consultative process within the Alliance and tasked the Party's Secretariat with taking immediate leadership in implementing this initiative. (The Party had already rejected the budget on Monday, 17 February 2025 – two days before its scheduled presentation.) "The SACP categorically opposes the adoption of regressive taxation measures, such as a VAT hike, and the defunding of key pro-poor programmes. A VAT increase, much like cutting funding for essential social services, will only serve to further impoverish the working class and marginalised communities, while shielding the rich and their wealth. This is not merely unfair – it is a direct attack on social equity and justice," it said. The SACP reiterated its demand for a national budget that prioritises the implementation of the National Health Insurance (NHI) and facilitates a transition to a universal basic income grant for all South Africans. Furthermore, the SACP urges the government to urgently recapitalise and revitalise state-owned enterprises, reversing the harm caused by neoliberal policies. "We call for reversing the damage to governance and management due to state capture, and stress that the delayed funding of these enterprises should not be viewed as 'bailouts'," it said. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
