In the first half of the year, Hong Kong's IPO raised more than HK$70 billion

The Hong Kong Stock Market, the world's largest IPO-raising stock market in 2018, has undoubtedly once again consolidated its position as a global financial center. The support of some new economic stars has also made the Hong Kong Stock Market tend to be younger. In 2019, Hong Kong Stock Exchange continued to list a large number of listed companies, especially the mainland enterprises, which occupied the top position in the list. In addition, after the Hong Kong Stock Exchange revised the new listing system, a group of encouraged enterprises flocked to the market.

However, the Daily Economic News reporter noted that behind the booming new stock business, some of the old accounts had been dug up. Some international companies have been fined hundreds of millions of Hong Kong dollars for previous problems in the sponsorship process. In addition, a large number of new listed companies are listed, while many companies are delisting, including well-known enterprises. In the first half of the year, accepted 169 listing applications, and the rhythm of accepting listing applications on the Hong Kong Stock Exchange was slow and fast. By the end of June this year, the HKEx disclosed that 169 companies had accepted listing applications, including 142 main boards and 27 GEM (former GEM). It is noteworthy that in June alone, the number of applicants for listing on the Hong Kong Stock Exchange reached 41 (including 31 motherboards and 10 GEM1). Among them, 89 companies (83 motherboards and 6 GEMs) have been approved in principle for listing applications in the first half of the year. In the first half of the year, the number of newly listed companies reached 79 (73 motherboards and 6 GEMs, excluding those that changed from GEM to motherboard).

In the first half of the year, the total initial capital raised by IPO listed companies (excluding companies introducing listings) reached HK$71.2 billion (including HK$64 billion net capital raised). (The data in this paper are from Wind, and the final data are based on the data published by HKEx.) The top five companies listed in the first half of this year are all from the mainland. They are Shen Wanhongyuan, Hansen Pharmaceutical, China Oriental Education, Credit Energy and Jinxin Reproduction. Their total fund-raising amounts to HK$28.8 billion. "Daily Economic News" reporter noted that although the above companies raised more capital, but compared with the 2008 Hong Kong stock IPO fund-raising large-scale, still a lot smaller, last year's listed in Hong Kong shares of China Tower, millet group-W, American League commentary-W is much larger in terms of market value and scale of fund-raising. However, the first half of this year should be less than last year's, because Tiger Securities Research Team told reporters: "In fact, the first half of this year is better than the first half of last year (year-on-year comparison) in terms of financing volume and initial market value." Another point that should not be overlooked is that since the Hong Kong Stock Exchange revised the listing rules last year, millet group and American Corps commented on the listing of two companies with different voting rights structure in Hong Kong stock market, there was no listing of such companies in the first half of this year. However, the market is now rumoured that Ali will return to Hong Kong stocks, if this is true, it will undoubtedly become the star of new shares in Hong Kong this year. Among the sub-IPOs listed this year, CITIC Hong Kong undoubtedly became the most attractive company. With its unique business and strong shareholder background, CITIC Hong Kong was sought after by the market after its listing. By the end of July 2, CITIC Hong Kong had increased three times (compared with the issuing price). From last year, investors should pay attention to the words "W" or "B" behind the abbreviations of some listed companies. In fact, this is the special mark of some new types of companies, such as millet group-W, which means different voting rights after the Hong Kong Stock Exchange revised its listing rules in the first half of last year. And those with "B" represent the unprofitable biotechnology listed companies. For such companies, the chief executive of the HKEx said at that time that companies without revenue were in the early stage of high-risk development, and it was difficult for investors to judge the company's development prospects. The R&D, manufacturing and listing process of biotechnology companies'products are strictly supervised by the national pharmaceutical regulatory authorities. Each stage of their development has clear and clear regulatory standards and standards. This feature enables biotechnology companies to provide clear and specific disclosure in the capital market for investors to judge and invest. 

In the first half of this year, there were three listed companies of the above type, namely, Maybe Pharmaceutical-B, Kansino Bio-B and Keystone Pharmaceutical-B. The cornerstone pharmaceutical industry raised more than HK$2 billion when it raised funds. The company is a clinical phase biopharmaceutical company, focusing on the development and commercialization of innovative cancer immunotherapy and molecular targeted drugs to meet the medical needs of cancer treatment.

While Hong Kong stock market occupies the throne of global IPO market for a long time and major investment banks share the dividends, there are still many disharmonious voices, especially the improper behavior of investment banks in the process of sponsorship.

In March this year, UBS, Morgan Stanley, Merrill Lynch and Standard Chartered securities were fined HK$375 million, HK$224 million, HK$128 million and HK$59.7 million respectively by the Hong Kong Securities Regulatory Commission for the absence of sponsors. UBS, which received the most fines, was suspended for one year.