On the morning of September 28, 2023, the second New Investment Expo of Frost & Sullivan (Frost & Sullivan, abbreviated as Frost & Sullivan) and the 17th Frost & Sullivan Global Growth, Innovation and Leadership Summit (abbreviated as 'Frost & Sullivan New Investment Conference') Sub-forum on the High-quality Development of Listed Companies was grandly held at the Shangri-La Hotel in Pudong, Shanghai. The forum was jointly organized by Frost & Sullivan, TradeGo, Roadshow China, and LeadLeo.
The forum has invited more than a dozen heavyweight guests and industry experts, bringing together specialists from various fields such as sponsors, law firms, accountants, market research consultants, and investors. They will provide the latest market interpretations for listed and pre-listed companies, discussing the successful paths for enterprises in the capital market.
Wan Yong, Chairman of SULLIVAN TELE-TREND CLOUD TECHNOLOGY and Chief Executive Officer of TradeGo
At this forum, Wan Yong, Chairman of SULLIVAN TELE-TREND CLOUD TECHNOLOGY and Chief Executive Officer of TradeGo, shared IPO and secondary market data for Hong Kong, US and A-share markets in 2023. The presentation mainly covered aspects such as the IPO markets in Hong Kong, US and A-share regions, the secondary market, and innovation hotspots.
01IPO market
Wan Yong pointed out that this year, the global IPO market has continued to be sluggish, with a significant decline in the number of listings and total fundraising. Affected by multiple factors such as the interest rate hike environment and slow post-pandemic recovery, the Hong Kong stock market IPO market has not shown the active atmosphere expected and may still be in a wait-and-see state. In contrast, the number of new A-share IPOs and the amount raised are both leading globally, although there has also been a slowdown. The scale of IPOs in the US stock market dropped sharply in 2022 like an avalanche and has not yet recovered to the level of two years ago since this year began.
He pointed out that Hong Kong is actively seeking changes to improve the financing, trading, and investment environment. The Hong Kong Stock Exchange has introduced a series of reforms that are beneficial to the market, including: launching the 18C special-purpose technology company listing system in March, which lowers the listing threshold for technology companies; starting the Hong Kong dollar-RMB dual-counter model in June to enhance liquidity; and launching the new IPO settlement platform FINI in the fourth quarter.
02secondary market
In terms of the secondary market, Wan Yong stated that the Hong Kong stock market has continued to be sluggish, with the total market value evaporating by about HK$20 trillion since its peak in April 2021. The important index of the Hong Kong stock market, Hang Seng Technology, has only recorded an annual increase, while the overall Hong Kong stock market remains weak. The chill in the secondary market has also spread to the new share market, with trading volumes declining and market confidence insufficient leading to discounts in new share valuations, causing the amount raised through Hong Kong IPOs to fall below the top three globally.
Wan Yong reminded that insufficient liquidity affects the pricing function of Hong Kong stocks, and improving liquidity is urgent. All sectors in Hong Kong are actively working to improve the situation. In late August, the Hong Kong government established a task force to promote stock market liquidity and comprehensively analyze the factors affecting stock market liquidity. In addition, regulators have taken a number of measures, including continuously optimizing the interconnectivity mechanism, cracking down on shell companies, and launching the dual-counter mechanism.
03Innovation Hotspots
Wan Yong also mentioned the innovation hotspots in the capital market. He pointed out that there has been a surge in A-share buybacks, and the market bottom is expected. Hong Kong stocks are also increasing buybacks as their value is supported by fundamentals. The buyback behavior of Hong Kong-listed companies tends to support their own market value, and the recent surge in Hong Kong buybacks may also indicate that the market is reaching a bottom. Hong Kong stocks have initiated a new round of buyback waves to boost stock prices. Since this year, more than 130 companies have cumulatively repurchased about HK$62 billion worth of stocks, a year-on-year increase of 43%.
In addition, he also shared the impact of adjusting securities transaction stamp duty and Hong Kong's vigorous development of virtual assets.
