Tech Giants, Medical Stocks Lead in Hong Kong Listings

The bourse has been actively easing restrictions and luring tech giants in the first half-year to boost liquidity.
Belinda ZhouJul 08,2020,06:55

The Hong Kong Stock Exchange(HKEX) welcomed a bunch of new shares in the first half of 2020 and rose to third place in all the exchanges across the world for the funding size.

The 20-year-old exchange saw a year-over-year increase of 25% in the financing size, which amounted to HK$87.1 billion($11.2 billion) in the first half-year. Impacted by the Covid-19 pandemic, HKEX listed 59 new shares, down 22% from the number of new shares in the first half of 2019. 

The bourse has been actively opening up and luring tech giants and other companies by easing restrictions in the first half-year, which also resulted in continuous liquidity.

All the top five new stocks this year were new economic enterprises, with total financing of about HK$62.9 billion, compared with a HK$21.8 billion in the same period last year, up 118%.

Chinese e-commerce firm (Nasdaq: JD; HKEX: 09618) also launched a secondary listing of HK$30.1 billion($3.9 billion), accounting for 35% of HKEX’s fundraising amount in the first half-year.

U.S.-listed Chinese gaming giant NetEase (Nasdaq: NTES; HKEX: 09999) raised HK$21.1 billion($2.7 billion), contributing 24% to the total financing size in HKEX.

Additionally, among the top 5 newly added players, the other three companies all lie in the medical sector.

Kangji Medical Holdings Ltd.(HKEX:09997), which works in the design, development, manufacture, and sale of minimally invasive surgical instruments and accessories, has doubled its stock price since the listing.

Interventional procedural medical devices provider Peijia Medical Ltd. (HKEX:09996), closed at HK$33.3($4.3) per share on Tuesday with an open price of HK$25.8($3.33) per share on May 15.

Akeso Inc(HKEX:09926), addressing global unmet medical needs in oncology, immunology, and other therapeutic areas, jumped over 100% since its debut in April.

“Since retail investors have always been more enthusiastic about investing in small new shares, the oversubscription ratio in the first half of this year has improved from the same period last year,” consulting firm Deloitte wrote in its analysis.

In the first half of this year, 96% of new shares were oversubscribed, compared with 81% in the same period last year, and 56% of the projects were oversubscribed more than 20 times, while 30% were recorded in the same period last year.

Real estate, technology, media and telecommunications (TMT) industries ranked top two as for the proportion of new shares in Hong Kong in the first half of this year, according to Deloitte’s report.

Deloitte predicts that in the whole year of 2020, there would be about 130 new shares listed in Hong Kong with the financing of HK$160 to HK$220 billion, including 5 to 8 Chinese stocks listed in Hong Kong for a secondary listing.