I-OnAsia updates: CEO of the Stock Exchange of Hong Kong (“SEHK”) comments on Hong Kong’s IPO market, Qisda’s listing plan, Midea Group listing progress, and more…
Suffering from interest rate hikes and frequent geopolitical conflicts, the stock market of Hong Kong has experienced a slow post-pandemic recovery. During the World Economic Forum’s annual meeting in Davos, Nicolas Aguzin, CEO of the SEHK, discussed Hong Kong’s IPO performance, saying despite the fact that IPOs fell from 90 in 2022 to 73 in 2023, the number was still “acceptable”.
Mr. Aguzin indicated that China’s 5.2% GDP growth last year was encouraging. Equally, China’s Premier, Li Qiang, recently reiterated that China welcomes foreign investment, suggesting Hong Kong’s crucial role in attracting the same for China remains unchanged and is consistent with the state’s overall economic strategy.
Hong Kong is still in a position to connect East and West
Investors have reasons to look forward to a resurgence of IPOs in Hong Kong, as several multinational corporations have unveiled plans to list on the SEHK at the beginning of 2024.
On January 18, 2024, Qisda (TWSE: 2352) officially announced its Hong Kong IPO Plan for its subsidiary BenQ BM Holding Cayman Corp (“BBHC”). The global technology group, headquartered in Taiwan is actively engaged in information technology industries, developing and manufacturing of medical care products, and the provision of network communication services.
BBHC is the largest entity within Qisda’s healthcare group, currently owning two comprehensive teaching hospitals in mainland China, along with ongoing investments in medical centers. Due to its proximity to frontline medical, nursing, and patient needs, BBHC serves as the flagship institution guiding the group’s healthcare strategic direction.
Targeted for listing on the mainboard of the SEHK, Qisda emphasized that diversified financial channels will optimize the company’s financial structure for hospital expansion, including increased bed capacity as well as specialized medical teams and equipment.
In the fourth quarter of 2023, the China whitegoods giant Midea Group (SZSE:333) also revealed its plan to list on the SEHK. On January 16, 2024, Midea Group announced an update regarding the listing progress, stating that the IPO plan is in progress and under review by both Chinese and Hong Kong’s regulatory bodies. As the world’s largest home appliances maker, with a market cap of approximately 400 billion yuan (approximately USD55 billion), Midea Group is very likely to be the largest IPO to land on the SEHK in 2024.
Buckle up for the turbulence
Amid the ever-changing global regulatory landscape, intensified geopolitical conflicts and a potentially declining world economy, pre-IPO due diligence has never been more important to safeguard the interest of IPO issuers, sponsors and investors.
Objective of pre-IPO due diligence seeks to achieve transparency and to ensure what is promoted to the investing public via the offering memorandum or other platform is accurate.
For more than 20 years, I-OnAsia has been the market leader in pre-IPO due diligence for companies going public in Hong Kong. We also have been active exchanges in the USA, Singapore, and UK. Our reports are widely accepted across all major exchanges. We help companies meet regulatory requirements governing the listing of securities.
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