The performance of Hong Kong stocks in the past two years has been really brilliant.，There’s a lot to like about it。In addition to Hong Kong stocks rising 36% in 2017, leading the world，And on January 17, it broke through the 2007 era high point in one fell swoop.，Hit a new all-time high，Another eye-catching indicator，It is the fundraising ability of the Hong Kong stock market。Let’s first look at these three Hong Kong Stock Exchange data：One is 2017，Hong Kong Stock Exchange’s new share issuance raised US$16.427 billion，Ranked third among global exchanges。
The second is 2017，The number of newly listed companies was 174，Increase compared with 2016
- 1%。Third, the amount of financing generally required for Hong Kong stock listings
- 5%-3%of underwriting
cost
。this means，Various investment banks have shared in the Hong Kong market
- 11-
- 93billion in underwriting
cost
。201710 of the top five IPO sponsors in Hong Kong are Chinese. The Hong Kong Stock Exchange recently released 2017 market data.。
in，There is a highlight worth noting，That is, the top five companies in Hong Kong’s initial public offering funds are all Chinese-funded enterprises.，And the scale of fundraising is generally large。
2017Year，The top five companies in terms of IPO funds raised on the Hong Kong Stock Exchange are Guotai Junan、Zhongan Insurance、China Literature Group、Zhongyuan Bank and Guangzhou Rural Commercial Bank，The amount of funds raised is
- 5billion Hong Kong dollars、
- 8billion Hong Kong dollars、
- 7billion Hong Kong dollars、93billion Hong Kong dollars and
- 8billion Hong Kong dollars，total
- 8billion Hong Kong dollars。
in，Yuewen Group’s frozen funds during the subscription phase amounted to HK$520 billion，Set a record for the highest number of frozen funds for IPOs on the Hong Kong Stock Exchange in 2017，It is the second largest number of new stocks with frozen capital in the history of Hong Kong stocks.。
The top five IPO funds raised in the A-share market last year were:：China Galaxy Securities、Caitong Securities、Huaneng Hydropower、Zheshang Securities and Zhongyuan Securities，The amount of funds raised is
- 86billion RMB、
- 85billion RMB、
- 06billion RMB、
- 17billion and RMB 2.8 billion，total
- 94billion RMB。
Assuming that it is exchanged for 1 Hong Kong dollar
- 85Yuan RMB exchange rate calculation，2017The total amount of funds raised by the five companies with the highest fund-raising in the Hong Kong market in 2016
- 84times。It is worth noting that，in recent years，The boom in mainland companies listing in Hong Kong has also driven the market share of Chinese securities companies in Hong Kong to continue to increase.。
From the data point of view，A total of 19 institutions were responsible for co-sponsoring the top five companies with the largest amount of funds raised in 2017.，10 of them are Chinese-funded。Guangzhou Rural Commercial Bank’s four joint sponsors are all Chinese-funded。
Let’s take a look at these 10 Chinese-funded institutions：Guotai Junan International、SPDB International participated in the sponsorship of Guotai Junan Securities’ listing in Hong Kong；CMB International participates in the sponsorship of ZhongAn Online Property Insurance’s listing in Hong Kong；CITIC Securities International、CCB International、CMB International participates in sponsoring the listing of Zhongyuan Bank；Guangzhou Rural Commercial Bank’s four joint sponsors are all Chinese-funded，They are CICC Hong Kong Securities、China Merchants Securities International、CCB International、ABC International。
2017Hong Kong IPO market underwriting revenue reached
- 11The rules for underwriting and sponsoring companies listed in Hong Kong with US$100 million are slightly different from those in the Mainland.。A listed project is usually undertaken by four levels of investment banks.。What is the division of labor among investment banks at various levels?
- In addition to the work of other levels of investment banks, joint sponsors，Law firms also need to be coordinated、Securities Regulatory Commission, etc.，and pre-hearing document preparation，Preliminary due diligence and other work；
- The joint global coordinator is mainly in the sales process，Marketing，You can see the order status of all customers around the world，Orders can be aggregated based on，Allocate shares。
but，Joint Global Coordinators to meet relevant needs within the company
Require
，meeting
Require
The joint sponsor provides relevant due diligence reports；
- The joint bookrunner mainly plays the role of order collection，Can't see all orders，There is no allocation or pricing power；
- The joint lead manager is mainly responsible for writing research reports after the company is listed.。
The above-mentioned investment bankers said，Generally, Hong Kong stock listings charge an underwriting fee of 2.5%-3% of the financing amount.
cost
，Joint sponsor、The joint global coordinators get 70%-80% of it，The remaining 20%-30% belongs to the joint bookrunners and joint lead managers。Hong Kong Stock Exchange data shows，2017Year，Hong Kong Stock Exchange’s initial public offering raised US$16.427 billion，Ranked third among global exchanges。
this means，In the Hong Kong market, various investment banks only take a piece of the pie from the listing of new shares.
- 11-
- 93billion US dollars。Hong Kong stock listing
cost
It is worth noting that the lower，Reporter statistics found，Issues listed in Hong Kong
cost
It is not more expensive than A-shares。The reporter briefly compiled statistics on the top 10 companies that raised A-share funds last year.
cost
，The proportion generally accounts for more than 3% of the total funds raised.，Some companies even exceed 5%。
The listing expenses of the top 10 companies in Hong Kong by total amount of funds raised are generally around 3% of the total amount of funds raised.。For example，The top three companies in terms of funds raised last year were Guotai Junan、Zhongan Insurance、China Literature Group goes public
cost
respectively
- 84billion yuan、
- 95billion yuan and
- 15billion yuan。
If the exchange rate is still 1 Hong Kong dollar
- 85The exchange rate of RMB to RMB is used to convert the amount of funds raised.，The listing expenses of the above three companies accounted for 50% of the total funds raised.
- 27%、
- 17%and
- 3%。in fact，Listed on A-shares and Hong Kong stocks
cost
It is not the main consideration for a company to choose where to list.。The person in charge of the investment bank of a large southern securities firm told the China Securities Journal，The most important factor for a company to choose a listing location is valuation.，The second is the speed of approval，The third is company positioning。
Valuation，Currently, A-share valuations are generally higher than Hong Kong stocks，Very attractive for companies that want to go public。also，As A-share IPO approval speeds up，At present, there is not much difference in the queuing time between the two places.。However, Hong Kong’s listing rules are relatively loose，Some cannot reach A-share listing
Require
However, companies that meet the conditions for listing in Hong Kong will turn to the Hong Kong market.。
Another situation is，The company itself is positioned internationally，If there is a need to expand business in overseas markets，Will also consider listing in Hong Kong。Introduction from a person from the Hong Kong subsidiary of a large securities firm in Shanghai，Another important reason for mainland companies to list in Hong Kong is the diversified investor structure in Hong Kong，“Different from the mainland’s retail market，Investors in the Hong Kong market are mainly very professional institutional investors。
The investment philosophy of foreign capital is to focus on value investment，Focus on fundamentals。also，Because there are global institutional investors in the Hong Kong market，There are also more channels for refinancing after listing.。“In the past, all those listed in Hong Kong were large state-owned enterprises from the Mainland.，Foreign investment banks occupy a large area in terms of resources and understanding of the market.
Advantages
。
But in recent years，The scale of mainland companies listed in Hong Kong has become much smaller，Most of these mainland companies have been cooperating with Chinese securities firms for many years.，Chinese securities firms have a full understanding of their needs。Moreover, what these mainland companies want to attract most are mainland investors.，At this time, Chinese securities firms’ influence in the Hong Kong market
Advantages
begin to manifest。"A person from the Hong Kong subsidiary of the above-mentioned large Shanghai securities firm said。
The service capabilities of Chinese securities firms still need to be improved. A total of 55 mainland companies were listed on the Hong Kong Stock Exchange in 2017.，Accounting for 32% of the year。As of December 29, 2017，The total number of mainland companies is 1,051，The total market value is HK$22.52 trillion。The trend of mainland companies listing in Hong Kong has brought Chinese investment banks a bigger piece of the cake in Hong Kong.。
An introduction from an insider in the foreign investment industry in Hong Kong，A significant proportion of Chinese securities firms are state-owned enterprises，Not an independent investment bank。these few years，Mainland companies are booming in listing in Hong Kong，Take banking-related Chinese securities firms as an example，Some mainland companies listed in Hong Kong already have lending relationships with mainland banks.，They will give priority to Chinese securities firms。However，The competitive environment in the Hong Kong market continues to be fierce。
In comparison，Number of institutions of foreign investment banks、Staff size、Local resources and other aspects still occupy
Advantages
。The above-mentioned investment bankers said，Hong Kong as an international financial center，For global investors，For example, from the United States、european funds，Chinese securities firms have relatively few channels or branches around the world.，Foreign investment banks have global sales teams and branches。The simplest form of expression is，Major foreign banks can conduct roadshows around the world。
Although in recent years，Some Chinese securities firms have begun to set up offices overseas，However, the number of institutions of major foreign banks、Staff size and local resources are more
Advantages
。The chairman of the aforementioned Chinese securities firm also admitted frankly，Chinese securities firms are completing large orders independently、Relative lack of global service capabilities，Some relatively large orders will generally be completed in cooperation with major foreign banks.。
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