It’s almost 20 years since Industrial and Commercial Bank of China raised $22bn in a Hong Kong listing — the largest in history at the time. Since then, the city has been the go-to place for Chinese companies seeking capital and access to international investors.
In recent years, rising geopolitical tensions, Beijing’s tightening capital controls and the growing influence of mainland exchanges in Shanghai and Shenzhen have tarnished its lustre. It may now be making a comeback.
BYD’s $5.6bn share sale this week is a big deal for the city — the largest in Hong Kong in four years and the biggest automotive follow-on offering globally in a decade. The Chinese electric vehicle maker is profitable, cash rich and generates strong free cash flow. So when it raises capital, it signals a strategic shift rather than financial necessity.