Hong Kong bourse seeks to woo South-east Asia, Middle East firms for second listings
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The Hong Kong exchange has been striving to attract IPO hopefuls from elsewhere as part of its ambition to become a global capital raising platform.
PHOTO: AFP
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HONG KONG – The Hong Kong stock exchange plans to attract listed companies in South-east Asia and the Middle East, in particular, for second listings in the financial hub, its chief executive said, as the bourse looks to burnish its global credentials.
Hong Kong Exchanges and Clearing (HKEX) also sees a pickup in the number of companies listed in mainland China markets seeking a listing in the city to raise capital for their global expansion, Ms Bonnie Chan said.
“We’re now more focused on companies which are actually already listed on another market, but might have outgrown their domestic market,” added Ms Chan, a former capital markets lawyer, who took over as HKEX’s first female CEO in 2024.
“I am now beginning to realise that our sweet spot may not be private companies.”
As part of those efforts, the Hong Kong stock exchange will soon open a representative office in Riyadh, Ms Chan said, which will allow “even closer connection” with the Saudi exchange, after recent product launches.
Three Singapore companies were listed in Hong Kong over the last 12 months, and a Thai company is expected to do the same soon, Ms Chan said, adding that HKEX’s talks with potential issuers from outside the Greater China region have “gained quite a bit of momentum”.
The Hong Kong exchange, which is the preferred venue for Chinese companies looking to raise offshore capital, has been striving to attract IPO hopefuls from elsewhere as part of its ambition to become a global capital platform.
While that goal has met with limited success so far, Ms Chan’s efforts come against the backdrop of increased flows of capital into non-US markets as US President Donald Trump’s policies cloud investors’ appetite for dollar-denominated assets.
A surge in listings and follow-on share offerings by Chinese companies, such as electric vehicle battery giant CATL’s raising of US$5.3 billion (S$6.8 billion) in May, however, has boosted HKEX’s outlook after it reported record high profit for the first quarter.
The Hong Kong exchange has emerged as the top destination globally for listings by volume, with a total of 31 companies raising US$10 billion in 2025, according to LSEG data, with another US$26 billion raised via follow-on share issuances.
Investor interest
The momentum is set to continue mainly due to a strong list of mainland Chinese firms tapping the Hong Kong market to raise capital for global expansion plans, as Beijing steps up efforts to bolster its private enterprises and revive its economy.
More than 20 mainland China-listed companies have applied to raise capital in Hong Kong by issuing shares, while another 20 have announced similar plans, Ms Chan said, hoping to ride bullish investor sentiment.
The Hang Seng Index is up nearly 19 per cent so far in 2025. The number of companies in HKEX’s IPO pipeline has doubled to more than 160 as at June 13 from around 80 at end-December 2024, filing records show.
“Amid all the development in the world, we are now seeing investors again turning their attention to this part of the world when they assess investment opportunities, fund-raising venues,” Ms Chan said.
US investors’ demand for shares in recent Hong Kong listings has increased significantly, she added. “That’s a good indication that the interest has returned from investors across different markets.”
Reuters reported in May, citing sources, that online fast fashion retailer Shein was working towards a listing in Hong Kong after its proposed IPO in London failed to secure the green light from Chinese regulators.
Ms Chan declined to comment on Shein’s Hong Kong listing plans. REUTERS
