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Exclusive | UBS’s top China banker says Hong Kong still a magnet for global IPOs, with additional reforms likely to attract more start-ups in Greater Bay Area

  • Some 2,300 companies have raised US$582 billion via Hong Kong IPOs since the 1997 handover through May 2022, according to Refinitiv data
  • Hong Kong can still grease the IPO wheel to accommodate the listing of global companies given its status as a financial hub, top UBS banker said

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A electronic board showing the Hang Seng Index and stock tickers outside the Exchange Square in Central, Hong Kong. Photo: AP
Enoch Yiu
Hong Kong should strive to attract more global companies to the local stock market, while entrenching its position as the main funding avenue for mainland Chinese entities, according to one of the UBS Group’s top China bankers.

That will help broaden the investment options for traders and money managers in the city and around the region, said John Lee Chen-kwok, Hong Kong-based vice-chairman and head of Greater China global banking at the Swiss investment bank.

“The New York Stock Exchange and London Stock Exchange have always positioned themselves not as a regional exchange, but as a global exchange,” he said in an interview with the Post. “In Asia, we have not really seen sort of an international exchange yet. Hong Kong is ahead of other Asian markets in playing the role as a global exchange.”

Battery maker LG Energy Solutions raised US$10.7 billion in Seoul, the world’s biggest initial public offering (IPO) so far in 2022, according to Bloomberg data. Carmaker Rivian Automotive raised US$13.7 billion in New York to take the crown in 2021. China’s top chip maker SMIC raised US$7.6 billion in Shanghai to top the list in 2020.

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Hong Kong stock market won’t be ‘replaced’ by Shenzhen or Shanghai, says top China banker at UBS

Hong Kong stock market won’t be ‘replaced’ by Shenzhen or Shanghai, says top China banker at UBS

“For the Hong Kong IPO market to develop further, we need more regulatory refinement to make it easier for international companies to raise funds here,” Lee said. “We expect to see new developments in the Hong Kong market for years to come, just like what we have seen in the past 25 years.”

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