Home Views Geopolitics

Hong Kong finance has a security blanket

Nisha Gopalan
Nisha Gopalan5/29/2020 7:0 AM GMT+08  • 4 min read
Hong Kong finance has a security blanket
China’s decision to impose a national security law on Hong Kong has spurred speculation of capital flight and an erosion of the city’s status as an international financial centre. As a venue for share offerings, at least, the near-term futur
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

(May 29): China’s decision to impose a national security law on Hong Kong has spurred speculation of capital flight and an erosion of the city’s status as an international financial centre. As a venue for share offerings, at least, the near-term future is looking bright. For that, the territory can thank worsening US-China relations.

US-listed Chinese technology companies are lining up to sell stock in Hong Kong, seeking refuge from an environment that has become increasingly less hospitable. Nasdaq-traded JD.com and NetEase are planning secondary listings in the city next month, following a trail blazed by Alibaba Group Holding in November. Optimism that more companies will join them drove shares of Hong Kong’s exchange operator up more than 6% on May 25.

There is every reason to expect these stock offerings to do well, and push Hong Kong back up the rankings of the world’s largest fundraising centres. So far this year, the city is the sixth-largest market by capital raised. It topped the table for the whole of 2019 when New York-listed Alibaba sold US$13 billion ($18.5 billion) of stock, underscoring the existence of a strong local investor base for China’s most successful companies.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.