Many Chinese firms are expected to shift their fundraising plans to Hong Kong following measures by the mainland’s market regulator to support initial public offerings in the city, analysts say.
Many financial firms including UBS, Julius Baer, and KGI Asia have opted to use the dragon’s image on their lai see envelopes as opposed to a generic design, illustrating the mythical creature’s popularity with the public.
Analysts expect the Federal Reserve to start cutting interest rates next year, with one expecting the first salvo in March. Lower rates would benefit Hong Kong’s property and capital markets, and boost the yuan, they said.
Funds raised by newly listed companies globally might have plummeted by 61 per cent in the first quarter, as high inflation and a banking crisis pushed firms to put their IPO plans on hold, EY said.