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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
HONG KONG
- Overnight rates in Hong Kong rose further overnight, with the O/N HIBOR hitting 3.85% - the highest rate since early December. Move coincides with fresh extremes for HKD forwards, as the forward point discount hits 632 points Monday, the largest discount since 2019.
- What is driving these moves? HKMA intervention to buy HKD is certainly partially responsible, but contracting interbank liquidity in Hong Kong is often also correlated with demand for sizeable IPOs.
- China's steps in recent weeks to loosen the regulations around Chinese firms listing overseas could juice the IPO pipeline for March in HK. Authorities will be considering new overseas IPO applications from March 3rd.
- Chinese firms including WeDoctor and Black Sesame Technologies are already reportedly considering an HK listing, with other sizable deal announcements including Taishan Brewery ($300mln) and Merck's Kelun-Biotech (another $300mln) in recent sessions.
Figure 1: HKD Forward Point Discount Extends as IPO Pipeline Builds
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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