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21 June 2018

Hong Kong’s IPO Market is The Fastest Growing in The World — Here’s Why

With a developed economy, an enviable location and a strong neighbour, the future seems sweet for this alpha city.

Hong Kong was a British colony for more than 150 years, , as it is one of the most important commercial ports in Southeast Asia, and a crucial entry door for the immense Chinese economy that is taking the world by storm. Now, with the great ol’ empire gone, and a high density of commercial institutions in an area of 2,755 km2, strong IPOs are becoming a reality that will catch the attention of thousands of investors worldwide.

To make a short but accurate comparison, the annual volume of dollars that are being managed globally for initial public offerings, surpasses the $30 billion mark; with the United States in first place with $22.8 billion, and China in second place with $10.7.

Surprisingly, $5 billion (that represents half of the total IPO market in China) will be added thanks to the listings of various famous companies like Xiaomi, Meituan-Dianping and last but not least Didi Chuxing, corporation that bought all Uber’s market share in China.

Expectations fall very short, some experts claim that all these future IPOs are just only the start of a flourishing market that will send shockwaves across the globe, making these strategies even more popular. In 2017, the Hong Kong Exchanges and Clearing had a notable increase of 18 percent in revenue, an outstanding milestone bigger than what Nasdaq achieved (6.6 percent) and the NYSE accomplished (2.9 percent) in that same period.

Hong Kong’s favourable geographic location has made of this territory a hub for the economic boost of the fastest growing region in the world for the last 20 years, with a dynamic economy, well developed financial market and an undeniable link to mainland Chinese markets like no other.

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