Hong Kong is eroding Singapore’s home advantage.
14 companies based in the Southeast Asian city have chosen to list on their home stock market this year, compared with 13 on the bourse operated by Hong Kong Exchanges & Clearing Limited, according to data compiled by Bloomberg.
It’s not all bad news for the Lion City: Singapore Exchange Ltd. beats HKEX in funds raised from the initial public offerings. Led by NetLink NBN Trust, businesses raked in a total of 2.54 billion dollars, the data show. That compares with 677 million dollars raised in Hong Kong, including from firms such as Razer Inc., one of the year’s hottest technology IPOs. Razer Chief Executive Officer Tan Min-Liang said in a Bloomberg Television interview earlier this month that Hong Kong was “the perfect location” for the firm to access capital.
The companies that went to Hong Kong had a patchy post-IPO showing. Five stocks suffered double-digit tumbles of as much as 42 percent, the data show. Singapore saw three of its debut stocks fall, with the largest decline at 5.6 percent.
Hong Kong has seen a total of 138 IPOs this year, raising 14.9 billion dollars, according to Bloomberg data. Singapore had 18 initial share sales that raised 2.65 billion dollars.
The two former British colonies have a history of perceived rivalry. The island cities vie to be their region’s preeminent financial centre, as well as competing for international talent and comparing railway disruption statistics. – Bloomberg
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