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01 Sep 2010 11:20
Eversheds comment: Hong Kong prepares for IPO boom
Hong Kong, which last year was the world’s top spot for listings, is once more preparing itself for a boom in IPOs with a combined $6 billion already being targeted by companies for September - a figure which does not take into account the estimated $15 billion AIA deal expected to hit the city in October. Stephen Mok, partner in the Hong Kong office of international law firm Eversheds comments on why Hong Kong is proving so popular:
“The reasons for Hong Kong’s reputation as the world’s top IPO spot are threefold. Firstly China's continuing economic growth results in a steady flow of companies wishing to tap the equity markets and as Hong Kong is the only international financial centre in China, the Hong Kong Exchange is the natural destination for many Chinese companies. Secondly it must be remembered that the investors base in this part of the world is still relatively strong despite the financial crisis and supports attractive valuations not only for companies in China but also other countries. Finally much of Hong Kong’s success in attracting listings can be put down to the hard work of the Hong Kong Government and the Hong Kong Stock Exchange both of whom have put a great deal of effort into promoting the Exchange in recent years.”
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