Hong Kong exchange marks a bumper day with six stock trading debuts as city tries to claw back global IPO crown from New York

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The six initial public offerings raised a total of HK$4.4 billion (US$563.5 million), the biggest being Shanghai-based developer Zhongliang that raised HK$2.94 billion

The Hong Kong stock exchange has seen three listing cancellations since June 13 as confidence has been rattled by unprecedented political turmoil

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Executives of six companies that debuted on the Hong Kong stock exchange had to share one ceremonial gong between two companies to fit on the bourse’s centre stage on 16 July, 2019. Photo: SCMP/ Nora Tam

Enoch Yiu

Published: 11:37am, 16 Jul 2019Updated: 11:05am, 19 Jul 2019

Six companies debuted on the Hong Kong stock exchange on Tuesday, marking the busiest initial trading day for a bourse that is trying to claw back its global fundraising crown from New York city.

The six initial public offerings (IPOs) raised a total of HK$4.4 billion (US$563.5 million) in Hong Kong, raising the city’s fundraising tally to almost HK$74 billion so far for the year, lagging behind the amount of capital raised on the Nasdaq and the New York Stock Exchange in the world’s top two spots.

Still, the bumper day is a much-needed boost for Hong Kong Exchanges and Clearing Limited (HKEX), the operator of Asia’s second-largest capital market, after ESR Cayman and Budweiser Brewing Company APAC cancelled their fundraising within a month, knocking a combined US$11.04 billion off the tally and setting back Hong Kong’s attempt to reclaim the IPO crown for a second straight year.

Sentiments had been downbeat in Hong Kong, squeezed by the year-long US-China trade war between the world’s two largest economies, and rattled by massive rallies involving tens of thousands of protesters, almost a month after 2 million people took to the streets to oppose a controversial extradition bill that has been declared by its drafter to be “dead.”

Global IPO rankings (January 1- June 30, 2019).

“Hong Kong won many gold medals in the IPO market worldwide last decade; sometimes we get the silver, and sometimes the bronze,” said Charles Li Xiaojia, chief executive of the HKEX, during a listing ceremony at the exchange. “The most important things is to do our best to attract companies around the world to list here.”