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HONG KONG
ASIAN LEGAL BUSINESS APRIL 2015
GATHERING MOMENTUM
A floor trader walks out of the trading hall during morning trading at the Hong Kong Stock Exchange. REUTERS/Bobby Yip
AFTER A STRONG SHOWING IN 2014, HONG KONG’S IPO MARKET IS SET TO CARRY THE MOMENTUM FORWARD INTO 2015, WITH A STRONG PIPELINE OF COMPANIES LOOKING TO LIST ON THE HONG KONG STOCK EXCHANGE. ON THE LIQUIDITY FRONT, THE SIGNS LOOK POSITIVE WITH THE HONG KONG-SHANGHAI STOCK CONNECT STARTING TO BEAR FRUIT, AND THE INTRODUCTION OF A SIMILAR SCHEME BETWEEN HONG KONG AND SHENZHEN’S STOCK MARKETS PENCILED FOR LATER THIS YEAR. MEANWHILE, DISCUSSION OVER THE HOTLY DEBATED ISSUE OF WHETHER HONG KONG SHOULD ALLOW WEIGHTED VOTING RIGHTS HAS CONTINUED INTO 2015. KANISHK VERGHESE REPORTS
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fter a few sluggish years, Hong Kong’s IPO market bounced back in 2014, with some big-ticket deals including WH Group’s $2.1 billion listing last July and Dalian Wanda Commercial Properties’ $3.7 billion offering in December. Data from the Hong Kong Exchanges and Clearing Group shows that 2014 saw 96 new main board listings, topping the previous record of 94 set in 2010. Meanwhile, IPO fundraising increased by 34 percent from 2013 to $29.3 billion, the world’s second-highest total behind New York, according to Dealogic data. The momentum is expected to continue into 2015. KPMG forecasts that 110 companies will list on the Hong Kong Stock Exchange this year, with IPO funds likely to raise more than HK$200 billion ($25.8 billion). The year has started positively, with broadband Internet provider HKBN launching a $750 million IPO, and Chinese automotive glass maker Fuyao Glass Industry Group raising about $950 million in March. In the pipeline are larger deals including Chinese brokerage GF Securities’ proposed $3.6 billion listing and the $3 billion offering of Legend Holding Corp, the parent of Lenovo Group, the world’s biggest maker of personal computers. “Deal flow for the year is relatively healthy,” says Catherine Tsang, a partner at Paul Hastings in Hong Kong.REUTERS/Nayef “This yearHashlamoun will be