Hong Kong to ride IPO wave as global investors pour in, JPMorgan says

The Hong Kong stock exchange is set to be inundated with initial public offerings (IPOs) in coming months after Chinese electric vehicle (EV) battery king CATL’s bumper listing whetted global investors’ appetite for Asian markets, according to JPMorgan Chase.

The local bourse, buoyed by regulators’ efforts to promote fundraising, has made a strong comeback this year and is currently leading the race for the title of the world’s busiest IPO market.

“There is a strong pipeline of IPOs that we expect to come to the market over the course of this year,” Paul Uren, JPMorgan’s head of investment banking in Asia-Pacific, told the Post in Shanghai.

“There are some very high-quality companies that investors want access to. Global investors are diversifying their allocations and they are seeking to increase their exposure to other markets, including Japan, Hong Kong, [mainland] China and India.”

Uren made the remarks last week as JPMorgan held its annual Global China Summit, a two-day event ending on Friday that drew more than 2,800 company executives, regulatory officials and institutional investors from around the world.

On Tuesday, CATL, also known as Contemporary Amperex Technology, completed the world’s largest IPO this year, raising HK$41 billion (US$5.23 billion), with its Hong Kong shares climbing 16.4 per cent on their trading debut.