Hong Kong's initial public offering (IPO) fundraising has already surpassed the total for the entire previous year, and the city is on track to set a new annual record, according to the chief executive of Hong Kong Exchanges and Clearing (HKEX).

Bonnie Chan, the HKEX CEO, made the remarks during a "Opportunities for Success, First Choice Hong Kong" event in Kuala Lumpur. She highlighted that global capital is flowing back to Asia, a trend that benefits both Malaysia and Hong Kong, and urged Malaysian companies to consider listing in Hong Kong to access mainland Chinese investors.

Chan noted that she has frequently visited Kuala Lumpur this year to strengthen ties with Malaysia. In March, she signed a memorandum of understanding (MoU) with Bursa Malaysia, followed by extensive follow-up work. Three weeks ago, she returned to Kuala Lumpur after the Hong Kong Securities and Futures Commission (SFC) and the Malaysian Securities Commission signed an MoU, and HKEX recognized Bursa Malaysia as a "Recognized Stock Exchange," paving the way for Malaysian companies to list in Hong Kong.

Last year, Hong Kong raised $39.5 billion through 120 IPOs, making it the world's top fundraising platform. As of early August, Hong Kong's IPO fundraising had reached $41 billion, exceeding the full-year total for 2023, and Chan expects the year to set a new record. She stated that global attention is refocusing on Asia, particularly China, as capital was previously concentrated in the US market, especially in one or two sectors. However, political and macroeconomic changes have led investors to realize the need for diversification, a trend favorable to both Malaysia and Hong Kong.

Malaysia is set to support 60 IPOs in 2025, the most in two decades, but Chan argued that Hong Kong remains an ideal choice for companies seeking to access a broader base of investors and a deeper pool of capital. She noted that the market previously believed that a listing in Hong Kong required a China-related business, but this perception has shifted in recent years. Last year, a diaper company headquartered in Dubai, with operations focused on Africa and Latin America, successfully listed in Hong Kong. A few months ago, Indonesian gold mining company Modecta also completed its IPO in Hong Kong, and neither had revenue from China. Chan believes that as mainland investors seek to diversify their portfolios, more companies with limited business links to China will consider listing in Hong Kong.