Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Indexes  >  World  >  Hang Seng    HSX   HK0000004322

HANG SENG (HSX)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsHeatmapComponents 
News SummaryAll newsNews of the components ofTweets

Hong Kong eyes blockbuster China tech IPO queue, led by Xiaomi

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/29/2017 | 11:46am CET
FILE PHOTO: Attendants are silhouetted in front of Xiaomi's logo in Beijing

Hong Kong bankers are eyeing a slew of blockbuster IPOs from Chinese technology firms with a total market capitalization of some $500 billion over the next two years, in a sharp contrast to 2017 - the city's worst year for raising equity in a decade.

If bankers' expectations are met, it would set up Hong Kong for a showdown with New York, the traditional host for the world's hottest new-economy companies and Hong Kong's closest rival for the global IPO crown.

Companies such as smartphone maker Xiaomi [IPO-XMGP.HK] and wealth management platform Lufax are among those mulling multi-billion dollar listings in Hong Kong next year, encouraged by a late-2017 rush of tech floats.

Bankers estimate Xiaomi's IPO could value the company at up to $100 billion, while Lufax was valued at $18.5 billion in its last funding round.

"The expectation is that over the next couple of years there is probably upwards of $500 billion of market capitalization just in the tech sector in China that could go public," said Tucker Highfield, head of equity capital markets syndicate for Asia Pacific at Credit Suisse.

Some firms will still head to New York, whose acceptance of dual-class share structures is attractive for many technology companies. Meituan-Dianping, a Chinese online platform for ordering food and booking movies, is expected to choose New York for a float that could raise $3 billion.

But Hong Kong, the world's biggest equity capital-raising center for four of the last 10 years, is looking to revive its appeal and this month announced plans to allow dual-class shares as it tries to attract Chinese tech listings.

Hong Kong raised $32.8 billion in equity capital in 2017, Thomson Reuters data shows, the lowest since 2008 when fundraising dried up during the global financial crisis.

Of this, IPOs accounted for $10.9 billion or just more than half 2016 levels, leaving Hong Kong ranking fourth globally for 2017, behind the New York Stock Exchange, Shanghai Stock Exchange and Mumbai's National Stock Exchange.

DISTRACTED INVESTORS

Bankers and investors said the dominance of Wall Street in the first half of the year, when a series of record closes for benchmark indices grabbed headlines, distracted global investors from an even stronger rally in Asian emerging markets stocks.

Hong Kong's blue-chip Hang Seng Index <.HSI> has gained 35 percent this year - its best performance since 2009. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> has risen over 32 percent. [MKTS/GLOB]

The city was also hit by the timing of some giant floats, such as an IPO of up to $10 billion by China Tower, the world's largest collection of telecoms towers, that was expected in 2017 but is now seen happening in early 2018.

Spurring the current optimism are a series of recent hot tech floats. China Literature (>> China Literature Ltd) raised $1.1 billion in November and jumped more than 80 percent on its debut - the best opening pop by any big IPO worldwide this year.

"The backlog is strong," said Aaron Arth, head of the financing group for Asia excluding Japan at Goldman Sachs.

"There are a number of big deals likely to come to market that are backed by strong business dynamics and exposure to China - all at a time when people are reallocating to the region," Arth added.

Equity-raising across Asia-Pacific slipped 2 percent this year to $236.3 billion, its lowest since 2013, as sales of additional equity by listed groups fell 14 percent.

Morgan Stanley (>> Morgan Stanley), UBS (>> UBS Group) and Goldman Sachs (>> Goldman Sachs Group) led the equity league tables for the region with $13.6 billion and $12.4 billion and $12.3 billion of deals to their credit respectively. Citic Securities (>> CITIC Securities Co Ltd) and Citigroup (>> Citigroup) rounded out the top five.

(Reporting by Jennifer Hughes; Editing by Himani Sarkar)

By Jennifer Hughes

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HANG SENG
01/17 ASIA MARKETS : Hong Kong Stocks Score Fresh All-time High
01/17 ASIA MARKETS : Hong Kong Stocks Score Fresh All-time High
01/17 ASIA MARKETS : Asian Markets Mostly Slide Lower Following U.S. Selloff
01/17 ASIA MARKETS : Asian Markets Slide Lower Following Late U.S. Selloff
01/17 Asian Shares Lower After Wall Street Fades
01/16 Stocks Retreat After Dow Crosses 26000 Milestone
01/16 Stocks Retreat After Dow Crosses 26000 Milestone
01/16 Stocks Retreat After Dow Crosses 26000 Milestone
01/16 Dow Industrials Cross 26000 for First Time as Earnings Season Ramps Up
01/16 Dow Industrials Cross 26000 for First Time as Earnings Season Ramps Up
More news
News of the components of HANG SENG
10:41a TENCENT : Google and China's Tencent Find Being Friends Has Benefits
10:29a CHINA UNICOM HONG KONG : Operational Statistics for December 2017
09:54a SANDS CHINA : Interim Dividend and Closure of Register of Members
09:16a LENOVO : Save Up to 67 Percent On Lenovo ThinkPads
09:14a LENOVO : Motorola`s 2018 smartphones featured in massive leak
06:15a Winter sports industry turning cold into gold
05:31a Google announces patent agreement with Tencent amid China push
More news
Chart HANG SENG
Duration : Period :
Hang Seng Technical Analysis Chart | HSX | HK0000004322 | 4-Traders
Technical analysis trends HANG SENG
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Heatmap :