Financial Associated Press (Shenzhen, reporter Cheng Mengqi) news, 2021 is an extraordinary year for Hong Kong stocks, whether it is the Hang Seng indexes or the new stock market that caused heated discussion last year, they have experienced fierce turbulence and ups and downs in the first three quarters of this year.
As of September 30, the Hang Seng Index had fallen by 10.02% during the year, and the subsequent National Day holiday once touched 23,681 points, creating the lowest point of the HSI this year. In such a volatile market, the amount of IPO funds raised in the first three quarters has risen all the way in the countertrend.
According to data from the Hong Kong Stock Exchange, a total of 72 companies appeared on the main board of the Hong Kong Stock Exchange in the first three quarters of this year, a decrease of nearly 30% compared with the number of 99 in the same period last year, but the overall fundraising increased by 32% year-on-year. The amount of funds raised in the IPO was HK$285.5 billion in the first three quarters of 2021, compared to HK$215.9 billion in the same period last year. Three-quarters of this year has passed, according to PwC research reports, in 2021, the amount of Hong Kong stock new stocks raised may reach HK$460 billion, the number of new stocks is expected to exceed 170, the first three quarters of the performance has come to an end, and the fourth quarter of the wonderful waiting to open.
The number of new listings has decreased and the amount of capital raised has increased, which also means that the role of sponsors who are crucial throughout the listing process has become more competitive. The Sponsor is responsible for submitting materials to the SFC, submitting listing application documents to the Stock Exchange on behalf of the Company, responding to questions raised by the Exchange and the SFC until it is approved by the SFC and passing the hearing, which runs through almost all steps of the listing of the IPO.
<h2>A question: Sponsors compete, who ranks first in the number of projects? </h2>
According to Wind data, among the 72 IPOs in the first three quarters of 2021, CICC Hong Kong came out with 18 sponsorships, while Goldman Sachs Asia ranked second with a single difference. CICC Hong Kong and Goldman Sachs Asia represent both Chinese and foreign brokers, ranking in the top two sponsors in the Hong Kong IPO market and the only two brokers with more than 10 sponsors. The 2nd to 5th place in the number of sponsorship orders are Morgan Stanley Asia, CCB International and Haitong International, with 10, 7 and 6 sponsorships respectively. Among the five securities companies, there are 3 Chinese-funded securities companies and 2 foreign-funded securities companies.
Merrill Lynch, Xiaomo, UBS Hong Kong and Huatai Hong Kong all had five sponsors in the first three quarters. ABC International, CITIC Lyon and Credit Suisse Hong Kong all had four sponsors. In this echelon, the number of foreign-funded securities companies is larger, with a total of 5 foreign-funded securities companies and 2 Chinese-funded securities companies.
In addition, the number of sponsorships of CSCI is 3, CMB International and CMS Hong Kong are each sponsoring 2, while the number of securities companies that have only participated in 1 IPO sponsorship project is the largest.
<h2>Second question: Joint sponsorship has become a new trend, which Chinese and foreign securities companies have the most cooperation? </h2>
Among the 72 new stocks in the first three quarters of this year, 34 new stocks had exclusive sponsors, and as many as 38 joint sponsors, and joint sponsorship became the mainstream of this year's IPO. Among the joint sponsors, the most common combination is Goldman Sachs Asia + CICC Hong Kong, which has appeared a total of 9 times among the new stocks jointly sponsored by two or more companies, and the two leading Chinese and foreign securities companies not only do their own business well, but also rank in the sponsorship list, and the cooperation is also quite smooth. The largest number of exclusive sponsors is CCB International, which has exclusively sponsored 4 new shares, namely Sanxun Group, Kangqiao Yue Life, DXN Service Group and Lingyue Service Group.
<h2>Three questions: Which securities companies participate the most in tens of billions of fundraising projects? </h2>
Although the number of new shares decreased in the first three quarters of this year, the overall fundraising volume of the Hong Kong IPO market did not rise but declined, mainly because there were many star new stocks with super high net fundraising, including Kuaishou, JD Logistics, Baidu, Bilibili and Xiaopeng Motors, whose net fundraising exceeded HK$10 billion. Among them, Kuaishou had the highest net fundraising of HK$41.2 billion, and the sponsors of Kuaishou were Morgan Stanley Asia, Merrill Lynch Securities and Huaxing Securities Hong Kong, while the sponsor with the largest number of IPO participants in the 10 billion-level IPO was Merrill Lynch Securities, which participated in the four superIPO projects of Kuaishou, Baidu, JD Logistics and Xiaopeng Motors as co-sponsors.
<h2>Q4: Who is the sponsor of the unprofitable biopharmaceutical IPO? </h2>
In terms of industry distribution, medical stocks are still the main force of Hong Kong stocks, of which 12 unprofitable biomedical B-shares in the first three quarters were listed on the Hong Kong Stock Exchange.
At the HKEx Biotechnology Summit 2021 in September, HKEX Chief Executive Ou Guansheng said that Hong Kong is currently the world's second and Asia's first biotechnology fundraising center, and hopes to become the world's first in the future. Among these unprofitable biopharmaceutical stocks that "changed the fate of the Hong Kong Stock Exchange", Goldman Sachs Asia and CICC Hong Kong remained at the top of the list of sponsors, sponsoring 6 and 5 biopharmaceutical B shares respectively, followed by Morgan Stanley Asia, participating in 4 IPOs, and UBS Hong Kong participating in 3. In the sponsorship of unprofitable biomedical B shares, the participation of foreign securities companies is higher than that of Chinese securities companies.
<h2>Five questions: With the return of Chinese stocks, which securities companies are the main sponsors? </h2>
In addition, in the first three quarters of 2021, there will be 6 Chinese stocks returning, they are Autohome, Baidu, Bilibili, Ctrip, Xiaopeng Motors and Ideal Automobile. In the whole of 2020, a total of 9 Chinese stocks returned to Hong Kong stocks. A local securities firm in Hong Kong said that with the tightening of the review of the listing of Chinese stocks in the United States and the continuous reform of the Listing System of Hong Kong stocks, more Chinese stocks will return to Hong Kong stocks in the future, and more Chinese-funded enterprises will choose to list on Hong Kong stocks.
Among the 6 Chinese stocks that returned to Hong Kong stocks, all of them adopted joint sponsorship, with Goldman Sachs Asia being the most active, participating in the return of 5 of them. CICC Hong Kong and J.P. Morgan helped 3 companies return to Hong Kong stocks, and Merrill Lynch participated in 2. Similar to the unprofitable biomedical B shares, foreign securities companies have played a more important role in the return of Chinese stocks, while Chinese securities companies have more room to play.
<h2>Six questions: Which broker-sponsored new stocks rose the most amazingly on the first day? </h2>
The volatile market has greatly affected the performance of Hong Kong stocks this year. As of September 30, 72 new stocks in Hong Kong stocks performed flat on the first day, according to Wind data, 27 broke, 8 closed flat, and 37 rose, with a first-day increase rate of 51.4%.
Among the stocks that rose on the first day, 5 new stocks doubled their stock prices on the first day of listing, namely Angelalign, Medical Du Technology, Kuaishou, Nuohui Health and Mormatsu International, and the brokers participating in the first day doubling were Morgan Stanley Asia, Merrill Lynch, Huaxing Securities Hong Kong, Guojin Securities Hong Kong, Goldman Sachs Asia, CICC Hong Kong and UBS Hong Kong. Among them, Goldman Sachs Asia participated in the sponsorship of 3 of the new stocks, and CICC Hong Kong participated in 2.