The stock market in Hong Kong, known as the 'Asian financial hub', is showing signs of vitality recently. Transactions worth billions of dollars have followed, increasing the trading volume of the Hong Kong stock market nearly sevenfold in one year.
On the 4th (local time), Bloomberg reported that the scale of initial public offerings (IPOs) and additional stock sales in Hong Kong this year reached $26.5 billion (approximately 37 trillion won), which is a 597% increase compared to $3.8 billion (approximately 5 trillion won) last year. Bloomberg assessed this as the largest scale since the peak in 2021.
The Hang Seng Index in Hong Kong has also recently surpassed 23,000, showing a full-scale rebound. The index has recovered by 19.83% from the low point it fell to on April 7th due to the U.S.-China tariff war, as of the previous day. Industry experts are forecasting that the Hang Seng Index will surpass 25,200 within the year.
The IPOs of Chinese large corporations have led the boom in the Hong Kong stock market. Last month, China's largest battery manufacturer, CATL, went public in Hong Kong, raising up to $4.6 billion (approximately 6 trillion won). CATL succeeded in raising the largest amount of funding among global IPOs this year. In the same month, China's largest pharmaceutical company, Hutchison Whampoa, also went public in Hong Kong.
In addition, last March, Xiaomi, the largest smartphone company in China, raised $5.5 billion (approximately 7 trillion won) through stock sales on the Hong Kong stock market, while BYD, the top electric vehicle manufacturer in China, raised $5.6 billion (approximately 8 trillion won) through a large-scale paid-in capital increase on the Hong Kong stock market.
Bloomberg analyzed that 'if the fast fashion company Shein goes public in Hong Kong, it will be another notable transaction on the Hong Kong stock market.' Shein originally planned to list on the London Stock Exchange but is pushing for a listing in Hong Kong within the year due to delays in listing approvals from Chinese regulatory authorities.
The Hong Kong stock market is benefiting from the reorganization of global capital due to the U.S.-China tariff war. James Wang, head of the Asia (ex-Japan) equity capital markets at Goldman Sachs, noted, 'Capital is gradually flowing out of the U.S. and into some emerging markets including India and Hong Kong.'
The outlook for the future is also positive. Marvin Chen, a strategist at Bloomberg Intelligence, evaluated that Chinese corporations are boosting the market atmosphere by listing in Hong Kong. Compared to mainland China, financial regulations in Hong Kong are relatively free, and it is known that there is a premium over mainland stocks.
Xu Chi, deputy head of the capital markets sector at China International Capital Corporation (CICC), said, 'The listing of CATL has provided a positive momentum to the Hong Kong market,' and added, 'We are advising our clients that now is a good time to proceed with capital market plans.'