 |
Roundup: HKEx Debuts on Local Stock Market
HKEx debuts on local stock market
|
The Hong Kong Exchanges and Clearing Limited (HKEx), the merged entity of the local stock exchange, futures exchange and three clearing houses, became the world's second bourse to go public Tuesday as its shares made a strong debut on the main board.
The stock soared 137 percent to 9.20 Hong Kong dollars (1.17 U. S. dollars) at the opening bell from 3.88 Hong Kong dollars (50 cents), the level it was valued when the company was formed this year through the merger of the stock and futures exchanges.
It was traded as high as 8.55 Hong Kong dollars before the morning session ended as 316 million Hong Kong dollars worth of shares changed hands, making it the second most actively traded issue by value on the market. It had an intraday low of 7 Hong Kong dollars.
HKEx was listed on the local exchanges by way of introduction so it did not have an initial share price. The demand for the stock was high on turnover 439 million Hong Kong dollars, more than a fifth of the market total.
"The company's listing marks the completion of a series of reforms in the securities and futures industry in Hong Kong," said Charles Lee, chairman of the company, at its listing ceremony.
"It also opens up challenges and opportunities for the unification of global exchanges," Lee said. It is also considering a proposal to list its shares on the New York Stock Exchange, the chairman said.
The exchange-based securities and futures markets in Hong Kong have both seen substantial growth over the last decade. The size of the Stock Exchange in terms of the number of companies having shares listed on it more than doubled while its total market capitalization has increased by more than six times to approximately 4,728 billion Hong Kong dollars (606 billion U.S. dollars) at the end of 1999, more than three times the size of Hong Kong's 1999 GDP.
In March 1999, a comprehensive reform of the securities and futures markets in Hong Kong, including fundamental changes in the market structure to be achieved through the merger of five recognized and approved market operators in Hong Kong, was announced to enhance Hong Kong's competitiveness in an increasingly globalized financial marketplace.
Commenting on the HKEx's strategy and vision in the coming years, Lee said the company would focus on seeking opportunities for alliances with other major international exchanges and continuing to serve as China's mainland primary venue for capital raising.
It would continue to pursue business growth opportunities offered by Hong Kong's domestic capital requirements and to invest in technology to increase the speed and efficiency of transactions, Lee said.
In This Section
|