Inland Enterprises Raise Funds of Nearly HK$440bn in Hong KongLatest statistics show that China's inland enterprises raised funds of nearly HK$440bn in Hong Kong last year, this move once again proves that Hong Kong is the international capital market and financing center for inland businesses.Of the total capital of HK$460 billion raised by the securities markets in Hong Kong last year, about HK$343 billionn was via H-share and red-chip and another HK$132 billion via new stocks, among which 73 percent (about HK$96.7 billion) was raised by China's inland enterprises. So these enterprises raised funds of nearly HK$440bn last year. Altogether eight red-chip State-owned enterprises went listed in Hong Kong. Of these enterprises, three H-share and two red-chip ones raised money of HK$96 billion in HK main board, and three H-share ones raised money of HK$700 million. Experts have anticipated that more State-owned enterprises, especially some key enterprises such as Bank of China, China Telecom, and China National Offshore Oil Corp., will list in Hong Kong this year. Hong Kong has become a major window for China's inland enterprises to raise money. According to professionals, between 1993-99, the total capital raised by Chinese inland enterprises in Hong Kong exceeded HK$280 billion, accounting for over 80 percent of the total money raised by China's inland enterprises abroad. Meanwhile, Hong Kong has provided a largest circulation capital for these inland listed enterprises. Currently, H-share and red-chips have attained over 1/4 of the stock market value and turnover in Hong Kong's stock market. By PD Online staff member Huang Ying |
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