Midea, China's leading home-appliance company, made a triumphant debut on the Hong Kong Stock Exchange last month, raising US$4.6 billion. This marks the largest Hong Kong IPO in three years and the second-largest globally this year.
The company's stock surged 8% on the first day of trading and continued to soar, gaining more than 40% in just three weeks.
Structural support
Midea's listing, which single-handedly accounts for 64% of the total funds raised in Hong Kong year-to-date, has become a beacon of hope for a resurgent market. This deal has propelled Hong Kong back into the top five global IPO venues.
Just a week after Midea's listing, China unveiled its most aggressive stimulus package in years, aimed at bolstering the property and capital markets. This announcement sent Chinese markets into a frenzy, propelling the Hang Seng Index above the 23,000 mark for the first time in more than two and a half years.
The combination of the overall market rebound and the presence of high-quality listings such as Midea is expected to reshape the IPO landscape in Hong Kong and mainland China.
