Financial Secretary Paul Chan is pushing for Hong Kong to host a global tech start-up summit. During a visit to Spain, Chan discussed the idea with organizers of the South Summit. Hosting such an event would support the government’s goal of making Hong Kong an international technology hub.
Chan believes the recent decline in global interest rates will benefit asset markets and the business environment. He expects Hong Kong rates to follow a similar trend to U.S. rates under the linked exchange rate system. The speed and extent of rate cuts in Hong Kong will depend on local capital flows and market conditions.
The Hong Kong stock market has seen a nearly 7% surge over six consecutive trading days. Market trading has improved, and the IPO market is warming up.
Global tech summit proposal
Hong Kong’s IPO fundraising amount has already surpassed last year’s total, and its global ranking has jumped to fourth place. With around 100 companies applying to list in Hong Kong, Chan anticipates more active market financing activities. Chan has pledged to further promote Hong Kong and diversify its funding sources.
He made these comments as he began a week-long visit to Madrid and London with executives from the Science Park and Cyberport. However, the securities regulator has put on hold the offshore share offering plans of at least three Chinese bubble tea makers. This is due to the poor market performance of peers in Hong Kong amid weaker consumer sentiment at home.
Sichuan Baicha Baidao Industrial, which raised US$330 million in April, has seen its share price fall 70 percent from its IPO price. The tea chain reported a drop in gross revenue and gross profit in the first half of this year compared to the same period last year.
