Hong Kong’s new stock market (IPO) saw a drop to its lowest level in nearly 20 years last year due to various external factors. The newly appointed CEO of the Hong Kong Stock Exchange (00388), Chen Yiting, stated that with the improvement in market conditions, the IPO market in Hong Kong is showing signs of recovery. In the first quarter of this year, the number of IPO applications increased by about 30% compared to the previous year, with 65 applications filed for listing and approximately 100 companies in queue for listing, indicating that large enterprises are poised to list in Hong Kong.
Chen Yiting pointed out that the trading volume of Hong Kong stocks has significantly improved since last month, with trading volume reaching HK$1.3 to 1.5 trillion in the last two weeks of April. Even during the Labour Day holiday period, when there was a lack of buying from mainland investors, the trading volume still exceeded one trillion, reflecting a warming stock market and investors regaining confidence, which bodes well for more IPO activities in Hong Kong.
Furthermore, she also mentioned that Hong Kong and Saudi Arabia have made significant progress in deepening their interconnection. This includes the Saudi stock exchange being recognized as an approved bourse and the listing of the first Saudi ETF in Asia, suggesting that the prospect of Saudi companies listing in Hong Kong, or Hong Kong companies listing in Saudi Arabia, is promising.