Global Times｜Robotics sector ignites HK listing surge as investors pivot to China tech
Amid surging enthusiasm in Hong Kong's stock market and growing investor appetite for hard tech, Chinese robotics companies are igniting a new wave of IPO fever on the Hong Kong Stock Exchange (HKEX), a trend analysts predict will inject fresh momentum into the development of China's robotics industry.
A preliminary count showed that nine companies in the robotics industry chain have disclosed plans to list in Hong Kong this year, including five already listed on the A-share market, the Shanghai Securities News reported on Wednesday.
Heightened capital activities in the robotics industry reflect global investors' growing global investor confidence in the country's technology sector, an expert noted, saying that advances in fields such as artificial intelligence (AI), industrial robotics, electric vehicles and humanoid robots have drawn strong investor attention, accelerated listings and further enhanced the influence of the tech sector in the Hong Kong capital market.
On Tuesday, Chinese battery manufacturer EVE Energy announced an approvement of a proposal to issue H-shares and list in Hong Kong. The company said the move aims to further strengthen its capital base and overall competitiveness, enhance its international brand image, support the development of its global business and advance its globalization strategy.
According to HKEX, SwitchBot, a Shenzhen-based leading global provider of AI-empowered embodied home robotics systems, submitted its listing application on Sunday. On June 5, Estun Automation announced plans to issue H-shares and pursue a Hong Kong listing as part of its broader globalization strategy and efforts to accelerate its overseas business expansion.
HKEX also tapped into the growing wave of tech listings by launching its dedicated technology enterprises channel (TECH), HKEX said on its official Website. Experts said that the move will accelerate the virtuous cycle between the Chinese mainland and Hong Kong in the fields of technology and finance.
As the global economic landscape evolves, traditional industries face mounting pressure, while tech-driven enterprises are emerging as new engines of growth, Zhao Xijun, co-president of the China Capital Market Research Institute at Renmin University of China, told the Global Times on Wednesday.
Technology is playing an increasingly role in economic development, drawing greater investor interest and driving more frequent financing and investment activity in the sector, said Zhao.
"This virtuous cycle not only facilitates offshore financing for mainland tech firms but also injects fresh momentum into HKEX, diversifying its market structure," according to Zhao.
The Securities and Futures Commission and the Stock Exchange of Hong Kong Limited, a wholly owned subsidiary of HKEX, jointly announced on June 6 the launch of TECH to further facilitate new listing applications from prospective specialist technology companies and biotech companies, as well as a new confidential filing option for these companies, HKEX said on its official website.
"TECH will provide early and tailored guidance for specialist technology companies and biotech companies, helping them address key matters at a preparatory stage and navigate regulatory requirements with greater clarity and confidence, thereby facilitating a more efficient pathway to successful listing in Hong Kong," said HKEX's Head of Listing Katherine Ng, according to HKEX.
Zhao noted that Hong Kong serves multiple functions, including information exchange, market confidence transmission and resource allocation. As both a capital conduit and an information hub, it is expected to facilitate more efficient alignment between the Chinese mainland and international markets in terms of investment logic and expectations.
Data from China International Capital Corp showed that the HKEX has hosted listings from 28 Chinese mainland companies this year. In May alone, IPOs in the Hong Kong market raised a total of HK$56.1 billion ($7.18 billion), the highest monthly fundraising amount since March 2021.
As of Tuesday, 165 mainland firms were in the pipeline to list in Hong Kong, more than double the nearly 80 in mid-January, underscoring the growing momentum of the city's IPO market, China Media Group reported.