HK stock exchange hustles for more IPOs as capital returns

HKExX is also eyeing new business from regional companies via secondary listings

- Kang Wan Chern

As Asia's key centres of commerce, Singapore and Hong Kong have a part to play in the growth of the region's wealth, but each stands to gain by carrying out different roles, a senior executive of Hong Kong's bourse operator said.

While Singapore has gained in strength as a hub for wealth management and fintech innovation, Hong Kong takes a clear lead in equities trading and has rolled out measures to widen this advantage, chief executive of Hong Kong Exchanges and Clearing (HKEX) Bonnie Chan told The Straits Times in an exclusive interview in May.

Ms Chan, who took the helm from former CEO Nicholas Aguzin in March, was visiting HKEX's office in Singapore, where the bourse operator wants to court potential initial public offering (IPO) candidates and investors.

HKEX is also jostling to capture new business from regional companies such as those in Indonesia through secondary listings, a space the Singapore Exchange has long been eyeing.

This comes after a growing number of regional companies braved IPOS on their domestic markets in the past two years, as Covid-19 pandemic restrictions made it difficult for them to carry out international roadshows, among other things.

In 2023, companies from Indonesia accounted for half the total number of IPOs in South-east Asia and 65 per cent of total funds raised, followed by Thailand and Malaysia, according to data from professional services firm PwC.

Singapore was the quietest market for new listings, with just seven IPO deals and US$30 million (S$40.5 million) raised..

Now, quite a number of these regional companies are considering secondary listings on bigger bourses and have approached HKEX, expressing interest.

"As regional companies grow, it will be a test of their domestic markets to determine whether they have the depth to support bigger deals. Hong Kong will be attractive to them because we have the depth to support large IPOs," Ms Chan said.