The number of applications to list on the Hong Kong Stock Exchange is increasing

Hong Kong's stock market has received 30% more applications for initial public offerings (IPOs) since the start of this year than in the same period in 2023, indicating a market recovery as more start-ups is looking to raise capital in an environment where interest rates are expected to fall, the South China Morning Post (SCMP) reports, citing Hong Kong Exchanges & Clearing management.

"We have about 30 new listing applications to date, and the total pending, including renewed applications, has increased to nearly 40," Bonnie Chan Yiting, the new chief executive of Hong Kong Exchanges & Clearing (HKEX), said recently. adding: "Companies are still very interested in listing in Hong Kong."

Bonnie Chan Yiting, former co-chief operating officer of the Hong Kong exchange operator, took over the management of HKEX after the departure of Nicolas Aguzin. His appointment comes at a difficult time, as both market turnover and new listings fell last year due to high interest rates and rising geopolitical tensions.

The stock's daily turnover fell 16 percent to HK$105 billion (US$13.4 billion) in 2023, according to Hong Kong Stock Exchange data obtained by SCMP. Proceeds from IPOs have more than halved to a 20-year low of $5.9 billion in 2023, according to Refinitiv figures.

"We have seen positive signs in the stock market in the past two months," said Bonnie Chan Yiting, pointing out that the amount placed by international investors on the mainland market through the China-Hong Kong connection increased to an average of 130 billion yuan. ($18.08 billion) per day in the first two months of this year, which is an increase of about 40% compared to the previous year. His Majesty continued: "This shows that international investors still want to invest in China's growth potential. We have worked very hard to attract more companies to list on our market".

Bonnie Chan Yiting, the first female CEO to lead Hong Kong's stock market since its launch in 1891, said the regulator has a key role to play in promoting gender diversity on corporate boards.

We remind you that, at the end of last year, Nicolas Aguzin announced that he would resign as the executive director of the stock exchange operator in Hong Kong. He stepped down before completing his three-year term (May 2024), during which time the market lost ground as an important global destination for listings. Bonnie Chan Yiting was given a three-year term.