Hong Kong's Chan Says IPO Pipeline Is 'Very Strong'

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00:00We have looked at the IPO pipeline very strong.

00:06On the one hand, given the geopolitics, it is getting more difficult for tech stocks,

00:12say for example, to go to the US for listing.

00:16Then if they sit for international listing, Hong Kong is natural destination, and also

00:21as you mentioned, the return of the China concept stocks.

00:25I've already asked my colleagues in the Securities and Futures Commission and the Stock Exchange

00:31to get well prepared for them to come back to facilitate this listing.

00:36Should we expect more big listings this year?

00:40More to come, actually, more to come.

00:43The pipeline is very strong, and also the central authorities are very supportive of this move,

00:48encouraging the mainland major companies coming to Hong Kong for listing.

00:54For I guess those who, I cover the story every day, and almost every day it still surprises

01:01me that big name after big name files an application or gets approved for an application.

01:08If you could give maybe some in the audience who might not be too familiar, why are we here?

01:12Why are central authorities encouraging more listings to come to Hong Kong?

01:18What's the background?

01:19Well, you know, number one, for China's development strategy, they talk about domestic circulation,

01:28meaning stimulate domestic consumptions, domestic consumption-driven kind of growth, given their

01:35vast market, huge population, and the aspiration for better goods and services.

01:41This is one.

01:42Number two, they are also encouraging mainland companies to go global.

01:46There is also a saying, you either go out or you are out of business.

01:51So you can see mainland companies are getting very interested to go global.

01:58And there is also commercial justifications.

02:02You talk about the capacities on the mainland, say for example.

02:05Global South, in particular Southeast Asia, that will help address certain of the capacity issue.

02:18And also, this is the rising market, very familiar with the Chinese culture and custom, and the

02:27Chinese people are doing business there for a long time.

02:29So this outbound of mainland companies, this is a trend, unstoppable.

02:36And I think this is good also for the region, because by realigning their industry chain, their

02:42supply chain, they will also stimulate the growth of the region.

02:47And Asia, as you know, particularly this part of Asia, is a major global engine for growth.

02:55And given the Chinese economy growing steadily on a sustained basis, also become a stabilizer

03:03in terms of the current, sometimes pretty uncertain, and volatile global market.

03:09Stephen Roach, former, and there's a smile already, because for those of you who might

03:15have seen it, Stephen Roach, the former chairman of Morgan Stanley Asia, I think it was June

03:21of last year, made this fairly bold call that they said Hong Kong was over.

03:26A few weeks ago, in fact, about a week and a half ago, he somewhat changed his tune and

03:31said it's too early to call Hong Kong being over.

03:34In fact, he came on the show and explained why he had a change of, somewhat of a change

03:40of mind.

03:41And one of the things he said was, he didn't expect Hong Kong to benefit from a listing

03:47standpoint, to benefit from this rift that's taking place between China and the U.S.

03:52Is that, would you agree that Hong Kong has somewhat benefited from what's, let's take all

03:56the uncertainty out there?

03:57Well, you know, Hong Kong people are very agile and very adaptive to changes.

04:06I think the circumstances are bound to change, both external, on the global front, often also

04:14in this region.

04:16The question for us is to try to identify the mega trends, say, for example, currently it

04:23is the geopolitics, the green transition, the digital economy, and then redefine ourselves,

04:30get our positioning right, and concentrate to do the right thing, and leverage on our uniqueness

04:37and the competitive advantage.

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