Market of People's Republic of China,
Hong Kong is running the bulls as investors are turning up to pick up
stock offers. Companies trading in HK are willing to acquire funds
through their first capital issues worth $ 54 billion as per the
reported data in Reuters.
The amount of IPO's added $ 1 billion
to the previous highest record set in 2010. Although, investors are
picking up stocks in the market now, their risk appetite to chip in
for $ 54 billion is a rare fling. Therefore, the companies which are
able to issue stocks faster will have a higher chance of raising
their capital through investors.
The leading issuers retaining higher
capital from investors are leading brand names like Samsonite, Prada,
HK's top jewelry Chow Tai Fook and recently talked about Casino
operator MGM China. Four of these famous brand names are planning to
raise more than $ 8 billion on the back their brand value in HK and
all over the world.
Stocks of these brand names are likely
to trade higher as customer related stocks are rallying up in the HK
markets. MSCI China Index reported HK listed retailers trading 20
percent higher compared to their 100 month average calculations on
future price to earning ratio.
Not only consumer related companies but
also banks are issuing in stocks in the financial center to raise
capital for expansions. Citi Bank's HK venture Guangdon Development
Bank along with Citic Group is going to add up $ 13 billion in its
balance sheet soon. Beijing Shanghai is representing the highest
railway industry issue amounting up $ 5 billion.
Several Chinese Banks are raising
capital through IPO in HK markets including China Merchant Bank and
Minsheng. Credit Suisse issue of $ 16 billion might change valuation
of banking stocks in the market.
In the recent events which hit the
Asian markets and as per the wide range of IPO's entering HK markets,
investors are in for a treat. Issuers are ready to sell of their
stake at a moderate rate, but it is the will of investors which will
head the final valuation of shares in the market.
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