| Hong Kong, 2 Jan 2007 |
繁體中文版 |
IPO activities continue to be the spotlight for Hong Kong stock market in 2007 as more Chinese companies come to Hong Kong to raise equity funds, PricewaterhouseCoopers (PwC) predicted today at its "IPO Market Year End Review for 2006 and Outlook for 2007" press briefing. Fund raised through IPO is expected to reach HK$150 billion in 2007.
2006 was a record breaking year for the Hong Kong capital market in many aspects including IPO fund raised, total market capitalisation and market turnover. The total IPO fund raised reached an all time high of HK$342.2 billion, were up an impressive 79% compared to the record of HK$191.5 billion set in 2005.
The number of H-share listings increased from 9 in 2005 to 17 in 2006 in the Main Board of the Hong Kong Stock Exchange, accounting for 29% of the total number of IPOs in 2006, compared with 15% in 2005.
"In 2006, we witnessed the listing of the Industrial and Commercial Bank of China (ICBC), the largest IPO in the global fund raising history. ICBC and the Bank of China (BOC), the two state-owned banks raised a total of HK$211.6 billion, together with other state-owned and PRC private-owned enterprises accounted for over 90% of the total fund raised," said Mr. Edmond Chan, Partner of PricewaterhouseCoopers' Capital Market Services Group.
"The expectation of a continuing growth of China's economy and the appreciation of RMB denominated assets resulted in a great demand from international investors and local investors for shares of PRC based enterprises, is among the key drivers contributing to a record breaking year for the Hong Kong stock market. In fact, most of these investors enjoyed a favourable return through IPO subscriptions in 2006," Edmond continued.
In 2006, the amount of fund raised through IPO accounted for about 66% (vs. 59% in 2005) of the total equity fund (HK$504 billion as of 20 December 2006) raised in Hong Kong. The remaining 34% were contributed primarily by placements, rights issues and consideration issues of listed companies.
"Looking ahead, we see another active year in 2007 and Hong Kong's stock market will continue to be the major platform for Chinese companies to raise international capital," said Richard Sun, Assurance Partner of PricewaterhouseCoopers.
The firm expects the volume of new listings to hit 70 in 2007, while the total capital raised may decline in the absence of "mega" deals like the IPOs of ICBC and BOC, which together accounted for 62% of the total amount raised through IPO in 2006.
"Over the past decade, the burgeoning Chinese economy has paved way for many PRC enterprises in establishing a promising track record and growth potential, thereby improving their ability to compete in the global arena. Many of these enterprises are looking for fund raising opportunities in the equity market. Even without "mega" deals, we still expect to see many sizeable and quality listings in 2007 and thereafter. Financial institutions, real estate, retail and consumer goods related companies will be the key contributors to capital raised in 2007," said Richard.
"Hong Kong's stock market has established itself as a major international fund raising hub in Asia for all its obvious advantages - the free flow of capital, established regulatory framework, legal system and experienced finance professionals. We also see the growing importance of Hong Kong as the fund raising platform for Asia as the profile of international investors continues to diversify, and the inflow of capital coming from different parts of the world. In addition, given its close proximity to Mainland China, many foreign investors will continue to seek an exposure in the burgeoning China market through Hong Kong," Mr Sun concluded. |
