Quick facts on Hong Kong's securities market

• In 2006, HKEx ranked 2nd globally in terms of the total amount of IPO fund raised and ranked 3rd in terms of total fund raised.
• As of February 2007, HKEx ranked 7th among the global stock exchanges. • HKEx is experienced in conducting super large IPOs and at the same time, over 55% of its listed issuers are small to medium size (market capitalization less than USD128 million, equivalent to HK$1 billion). It is a market for big and small companies.
• 98% of its 2006 new issuers have been fully subscribed at their IPOs with an average over subscription ratio of 259 times.

 

Why choose HKEx 

• Gateway to the Asia Pacific Region – With close trading and business links to other Asian economies, Hong Kong is strategically placed in a high growth region. As an internationally recognized financial centre with an abundance of professional expertise, HKEx can provide companies with fund-raising opportunities.
• Free Flow of Capital and Information – With no capital flow restrictions, simple tax structure (for example, no dividend income tax, no capital gain tax and low estate duty), full currency convertibility and the free transferability of securities, Hong Kong offers an attractive market for both issuers and investors alike. 
• Advanced Currency Clearing and Settlement Infrastructure – Hong Kong consists of sound and solid securities and banking sectors, which are supported by a strong trading, clearing and settlement infrastructure. For example, US dollars can be settled real time, which reduces foreign exchange settlement risk caused by the time gap between the settlement of Hong Kong dollars and US dollars.
• Welcome Overseas Companies – HKEx has announced its 2007-09 Strategic Plan to expand its international profile by enabling well-established and qualified foreign enterprises from different regions to list in Hong Kong. This signals a major step forward to attract overseas companies to list in Hong Kong.
• Additional or Alternate Fund Raising Market – HKEx is an international platform to raise international capital in addition or as an alternative to a domestic listing.
• Leveraging on Mainland China's Growth – For companies with operations or business connections in Mainland China, Hong Kong provides an ideal platform for issuers to achieve exposure in the rapidly growing Mainland Chinese market. This is the most liquid market for international portfolio investors to participate in China’s economic growth.
• Sound Regulatory Framework – HKEx’s Listing Rules are on par with international standards and demand a high level of disclosure from issuers. Its stringent corporate governance requirements ensure that investors have access to timely and transparent information which allows them to appraise the value and prospects of the companies.
• International Accounting Standards – Apart from Hong Kong Financial Reporting Standards and International Financial Reporting Standards, HKEx also accepts the use of generally accepted accounting principles in the United States of America («US GAAP») or other accounting standards by new applicants under certain circumstances.

 

For more information, please contact Business Development Division, HKEx
Address: 10/F One International Finance Centre 1 Harbour View Street, Central Hong Kong
Tel: (852) 2840-3780
Fax: (852) 2530-2858
Email: bdd@hkex.com.hk