The former chairman of the listing committee at the Hong Kong Exchanges and Clearing underlined Southeast Asian companies as a potential major source for future IPOs.
Andrew Weir, who is set step down this week from his role as chairman of the bourse’s 28-member listing committee, expressed continued optimism for Hong Kong as an international financial center beyond just fundraising for Chinese firms. In fact, Weir specifically underlined the neighboring Southeast Asian region as a source of new issuances especially due to Hong Kong’s deep pool of capital, market expertise and various cross-border initiatives with mainland China.
«The future of Hong Kong’s stock market is not only to act as a fundraising hub for Chinese companies, but it will also attract international companies, including those from the Asean [Association of Southeast Asian Nations] countries,» said Weir, who is also the China vice-chairman of KPMG, in an «SCMP» report.
Despite leading the world as the largest IPO market for seven out of the last 11 years, Southeast Asian companies represent a fraction of funds raised in the city. According to Refinitiv data, Hong Kong is home to just 80 listed Southeast Asian companies since 2010 which raised a total of just $2.85 billion.
China Opportunity
Still, Chinese companies stand to be the prime beneficiary of Hong Kong’s continued financial hub status. In addition to the widely anticipated shifts of U.S.-listed mainland firms to Hong Kong, Weir also highlighted opportunities from the Greater Bay Area – a major 11-city regional economic integration project with over 70 million people.
«Hong Kong will be a natural base for listings of fast-expanding companies in the Greater Bay Area looking to internationalize their brand and reputation, as the city is a capital hub with access to international investors,» Weir said, highlighting firms in the tech, healthcare, high-end manufacturing, property, logistics and education sector as potential listing candidates.
Weir’s role as chairman of the listing committee is widely expected to be replaced by Peter Brien, current deputy chairman of the committee and senior partner of law firm Slaughter and May.
