Hong Kong Stock Exchange Marks A Bumper Day

The Honk Kong Stock Exchange (HKEX) had a remarkable close as six new companies had their debut IPOs on the stock exchange. The HKEX long enjoyed the global IPO crown which recently shifted to the New York Stock Exchange (NYSE). Yesterday’s amazing run at the HKEX has reignited hopes that the stock exchange will be able to claw back its long held crown in global fundraising.

Tuesday also marked the busiest opening trading day for Hong Kong Stock Exchange.

The total fundraising resulting from the six IPOs on Tuesday amounted to a whopping 4.4 billion Hong Kong dollars. This places the HKEX at number 3 globally, just behind the NYSE and NASDAQ in terms of the sum of capital raised.

A total of seven firms were originally slated to have their trading debut. However, WMCH Global Investment, a construction firm based in Singapore, decided to put off its IPO a few days ago. This set back the capital raised on Tuesday by US$8.64 million that the Singapore based firm was expected to raise.

The other six firms that went on to have their trading debut on Tuesday come from a diverse range of industries including real estate, education, and computer services. The Shanghai-based Zhongliang Holdings Group was the largest of the six firms with its massive IPO that garnered HK$2.94 billion in capital funds. The price of its shares started off at HK$5.55 but by the time the day closed, it had reached HK$5.95 with a 7.2% within a day.

Tuesday’s run was a much-needed impetus to the attempts by HKEX to gain back its title as the top global stock exchange for IPOs. The HKEX has braced a few setbacks in the recent past when Budweiser Brewing Company APAC and ESR Cayman called off their fundraising within a month. This was quite a blow to the attempts by the stock exchange to gain back its former IPO crown as well as to retain its dominant position in the Asian stock market. The financial blow was worth a massive $11.04 billion that went off the tally in a span of days.

On the other hand, the uncertainty bred by the year-long trade war between two chief economic players in the world’s economy had taken its own toll on the sentiments in the stock market.

In the past decade, the HKEX has been the recipient of several gold medals in the global IPO market and the CEO of the HKEX is hopeful that its glory days will return.