Companies wanting to tap the pool of investment capital in Asia are set to benefit from an acceleration of investment from China in non-Asian equities and the increased focus of the Hong Kong Exchange toward serving the needs of mainland Chinese investors, according to BNY Mellon's latest white paper on listing in Hong Kong.
Asian investment institutions are increasing their portfolio allocations toward equities of non-domestic companies and HDRs should enable the efficient trading of shares in Hong Kong.
CAPITAL RAISING THROUGH DRs PICKS UP IN THIRD QUARTER
Asian Companies Still Dominate Activity
Capital raising by companies using depositary receipts (DR) picked up modestly in the third quarter, led by offerings from Asia-based firms and rising to more than $5.6 billion through the first nine months of the year, according to BNY Mellons DR Market Update.
Companies coming to market raised more than $2.0 billion during the quarter, up from $1.4 billion in Q2. Fubon Financial Holding Co. led with a global depositary receipt (GDR) offering in July of $850 million. Companies from Asia have accounted for more than $2.6 billion, or nearly half, of the total raised through September. More..