Shares of the Hong Kong Exchanges and Clearing, the operator of the Hong Kong Stock Exchange, tumbled as much as 4.3% to hit HK$276.4, the lowest level since June 2020, before closing 2.8% down at HK$281.
Hong Kong’s share of regional IPOs has shrunk to the lowest in more than 20 years despite a recent pickup in deals. Only $7.75 billion has been raised through IPOs in the city in 2022, accounting for 7% of the total for Asia, according to data compiled by Bloomberg. That’s the lowest share for Hong Kong since 1999, when it was just 6%.
Credit Suisse said in a note that the average daily trading turnover in the HKEX so far in the third quarter is only about HK$99 billion, sliding 24% from a year earlier. The bank cut the bourse’s target price to HK$375 from HK$396, maintaining its rating at Outperform. Read more …
