China and US Equity Analyst

Roger Xie

10 year investment experience on public and private equity. Deep-dive fundamental research. Specialize in China and US market.

HKEx(388.HK): Transformational Strategy Should Offset the Higher Stamp Duty Fear

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Thematic (Sector/Industry)

Hong kong Financials / Thematic (Sector/Industry)

<ul>
<li>It is reported that Hong Kong market regulator (Securities and Futures Commission) and market operator <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> are conducting study on the potential SPAC listings (Special-purpose acquisition company).  We believe <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> has always committed to be opened-mind to explore the dynamic and trend of capital market. However, Hong Kong market unlikely adopts the backdoor listings and shell activities such as SPACs. In contrast, regulator intends to simplify listing requirements and encourage more companies to go through regular IPO listing process amid to protect investor interest .</li>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> has achieved a blockbuster year for IPO market in 2020. The total IPO capital raised has reached HK$ 400bn, a jump of 27% year-over-year. Hong Kong has been ranked No. 2 globally by IPO capital raised and No. 4 by number of new IPO deals. We think the trend will continue and reiterate our call that Mega IPO and Chinese ADR homecoming will  reshape the landscape of Hong Kong capital market in long-run.</li>
<li>SPAC,  also known as a ‘blank check company’, is a publicly held investment vehicle created to merge with a company, thereby bringing the company public. Historically, the types of companies that have gone public through a SPAC have tended to be high-growth companies or those who wanted to raise more proceeds than would have been available to them through a traditional IPO.</li>
</ul>


It is reported that Hong Kong market regulator (Securities and Futures Commission) and market operator HKEX (388 HK) are conducting study on the potential SPAC listings (Special-purpose acquisition company).  We believe HKEX (388 HK) has always committed to be opened-mind to explore the dynamic and trend of capital market. However, Hong Kong market unlikely adopts the backdoor listings and shell activities such as SPACs. In contrast, regulator intends to simplify listing requirements and encourage more companies to go through regular IPO listing process amid to protect investor interest .

HKEX (388 HK) has achieved a blockbuster year for IPO market in 2020. The total IPO capital raised has reached HK$ 400bn, a jump of 27% year-over-year. Hong Kong has been ranked No. 2 globally by IPO capital raised and No. 4 by number of new IPO deals. We think the trend will continue and reiterate our call that Mega IPO and Chinese ADR homecoming will  reshape the landscape of Hong Kong capital market in long-run.
SPAC,  also known as a ‘blank check company’, is a publicly held investment vehicle created to merge with a company, thereby bringing the company public. Historically, the types of companies that have gone public through a SPAC have tended to be high-growth companies or those who wanted to raise more proceeds than would have been available to them through a traditional IPO.


SPACs Coming to Hong Kong ? We Don't Think So