CAPITAL MARKETS

HKEx chasing mining money

NOT content with being the leading capital raising market in the world, the Hong Kong Stock Excha...

Kristie Batten

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The HKEx was the top exchange for raising capital in 2009 and 2010 and is set to make it three in a row this year.

Hong Kong Exchanges & Clearing assistant vice president, issuer marketing Michael Chan said the Hong Kong, Shenzhen and Shanghai markets combined raised 2.1 times the total amount raised last year by the New York Stock Exchange, NASDAQ and the London Stock Exchange.

The HKEx has 1467 listed companies with a combined market capitalisation of $US2 trillion. The daily turnover is around $9.4 billion.

At the moment there are 90 mining companies and 79 energy companies listed, comprising 11.5% of all listings and 17.3% of the market capitalisation of all companies.

“In the energy and minerals sector we would like to see an increase,” Chan said.

“We’re determined to be the key international market for mining companies.”

Chan said there was a number of reasons the HKEx could eclipse the traditional resources-heavy markets of Canada and Australia.

“Not only do you have a higher valuation potential, but you have a better platform for raising further funds,” he said.

The HKEx is a leading exchange for initial public offerings, not in the number of new listings, but the amount raised.

In 2008 there were just three IPOs but the figure skyrocketed to 22 last year with $8.1 billion raised.

So far this year there has only been eight listings, though the value has soared to $12.1 billion.

Chan said there were about 200 IPOs in the pipeline, with 99 approved and 106 in the processing phase.

In a new development for the exchange, it recently changed its rules to allow bond issues in renminbi to tap into the Chinese market and capitalise on strong demand.

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