2015 has been an important year for the IPO market in Hong Kong because of the funds that have been raised within the first 6 months of the year. Many securities have been issued as IPO in Hong Kong and the upward trend continues. There are more than 45 new companies that got listed with the market and which has created a new and better outlook for the remainder of the year.
There are several Chinese companies that are planning to launch their IPO in Hong Kong during the latter half of the year. Companies such as China Reinsurance group, China Huarong Asset Management Company, IMAX China Holding and Everbright securities are all amongst the companies that have either entered their IPO in Hong Kong or will do so by the end of the year. The China Merchants Securities is also in the running to raise a whopping 43.7 Billion in Hong Kong Dollars which will take it straight to being the biggest listing on this stock exchange. It is already holding the position of being the biggest brokerage firm through its asset value in the whole of China.
Within other developments, the Hong Kong market is making positive attempts to increase in the number and value of its investors. Hence there are several schemes that have been floated which will gain foreign investors’ attention towards this market. This is expected to bring more liquidity in the market and make the prospects of investing higher. There are many mainland investors who have been mobilized between the Shenzen and the Hong Kong stock markets. This connectivity is expected to bring more business to both the market places.
From a government perspective also, there are many attempts being made to maintain the upward market trend in the issuing of new IPO in Hong Kong. The Boao Forum was one such avenue in which many plans were discussed to motivate the industry overall and let people know of the various government initiatives. Cutting in the reserve requirement ratio by the People’s bank of China has further eased the entering into markets by the investors in the mainland. Another initiative is the increase in the over the counter purchase and sale of securities which gives the market trade a personalized effect. New amendments are in way towards the short selling and the margin trading in the market too. This is expected to further boost the futures trading market also.