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After the successful acquisition of the London Metal Exchange at a price tag of US$2.2 billion, Hong Kong Exchanges and Clearing Limited (HKEx) is now a "leading global vertically and horizontally-integrated multi-asset class" international exchange, according to the Assistant Vice President of the Global Markets Division of HKEx, Mr Michael Chan.
Described HKEx as the "No.1 listed exchange in the world by market capitalisation", Mr Chan also said that Hong Kong is the global initial public offerings (IPO) market leader and the gateway between China and international markets. Hong Kong is ranked No.1 in terms of cross-border listings and capital raising by offshore companies. There were 835 cross-border listings in Hong Kong, according to Baker & McKenzie "Cross-Border Listings 2012", compared to 290 in London, 119 in New York, and 58 in Toronto.
Mr Chan was today (March 5, Toronto time) delivering a presentation in Toronto entitled "HKEx - the Listing Venue of Choice" at a business luncheon, jointly hosted by the Hong Kong Economic and Trade Office (HKETO) in Toronto, and the Hong Kong-Canada Business Association (HKCBA) (Toronto Section). It was attended by over 80 representatives from the local financial and business sectors.
He cited the fact that international companies increasingly choose to list in Hong Kong. He said between 2008 and 2012, the number of international listings almost doubled. In 2011, newly listed international companies account for 52 per cent of total IPO funds raised.
"Consistency and sustainability are the best words to describe how strong the Hong Kong stock market and IPO fund raising capability is," said Mr Chan who noted that HKEx's strategic plan in the next three years is to leverage China's capital account opening and aim for global leadership. The establishment of a joint venture company by HKEx and the stock exchanges of Shanghai and Shenzhen to develop index and equity derivative products and compile cross-market indexes is a major step in advancing the goals. Meanwhile, there is a wide range of RMB investment products listed on the Hong Kong stock exchange.
"The listing activities in Hong Kong remain robust," said Mr Chan. "Among the 1,547 listed companies in HKEx, 64 of them were newly listed last year," he said. "Applications have been growing steadily despite the negative global economic environment."
"The numbers of consumer goods and services companies are on the rise accounting for 33 per cent of the total listed companies in 2012, including the international brands of L'Occitane, Prada, Coach and so on. Traditional sectors such as financial and industrial services are also well represented in the market," Mr Chan added.
Mr Chan also said that HKEx attracted listed Companies of all sizes in a wide and diverse range of sectors and there is increasing significance in the mining sector. He cited the figures that the number of Hong Kong listed natural resources companies increased 10% annually between 1992 and 2012, and these companies represent over 20% of the total market capitalisation in 2012. China's natural resources sector is growing at a fast pace and the growing trend continues to attract international companies to China through Hong Kong.
Meanwhile, the Director of the HKETO, Miss Gloria Lo, in her remarks at the luncheon also said that Hong Kong has achieved great success in developing RMB business, providing a great platform for trade settlement, financing and investment in RMB.
"With the full support of the Central Government to develop Hong Kong as a premier RMB offshore business centre, we see huge potential for RMB business in Hong Kong," said Miss Lo.
Ends/Wednesday, March 6, 2013
Issued at HKT 11:01
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