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Hong Kong’s IPO pipeline is still strong despite Beijing’s regulatory crackdown, HKEX chief says


Hong Kong’s pipeline for initial public offerings remains strong — though there is more caution at the moment, given China’s increased regulatory scrutiny, the chief executive of Hong Kong Exchange and Clearing told CNBC.

“In the short term, obviously … this movement will cause some potential issuers to be a little bit more careful and try to see when it’s the right time to go to the market,” Nicolas Aguzin told CNBC’s Emily Tan on Wednesday.

Hong Kong markets went into a tailspin in late July after China tightened rules on the private education industry as part of a broader trend of increasing regulation in sectors such as technology and ride-hailing.

Last week, shares of gaming giant Tencent plunged 10% following an article by Chinese state media that called online gaming “opium,” urging the industry to prevent addiction among children.

“When you have volatility, it’s usually a little less likely that people will want to rush into the market,” Aguzin said. “But over the long term, right now, we’re looking at the pipeline, there’s over 200 companies … with their filings in the docket.”

A record number of 46 companies listed in Hong Kong in the first half of 2021. Total funds raised came to $211.7 billion Hong Kong dollars ($27.2 billion) from January to June this year — up 128% from the same period in 2020.

Hong Kong is ranked in third place globally in terms of IPO funds raised for the first half of 2021, HKEX said in its interim results.

HKEX earnings



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