HKEX Insight

More than 200 companies across Southeast Asia qualify as late-stage startups, or companies which have passed through late-stage funding rounds, in exciting sectors such as fintech, e-commerce, and healthcare, according to research conducted by Dealstreetasia, with around half based in Singapore, and the remainder in Indonesia, Vietnam, the Philippines and Thailand, respectively.

Indonesia is an exciting, emerging hotspot of activity in the new economy space.

With market reforms opening routes to capital for companies of tomorrow, Indonesia has been one of the most vibrant public markets in recent years with the Indonesia Stock Exchange (IDX) welcoming 80 new companies in 2023, a 36% year-over-year increase and accounting for half of the total IPOs across the ASEAN-5 markets. 

Data analysis from a forthcoming report produced in partnership with DealStreetAsia shows that HKEX is already the preferred destination for Southeast Asian companies choosing an overseas IPO.  

Since 2013, 83 of the 163 Southeast Asian companies listing overseas have chosen HKEX, which we believe is testament to our progressive listing regimes, liquid markets, diverse product ecosystem, competitive fee structures, multiple routes to market, robust regulatory framework, widely respected standing as a leading international finance centre and unique connectivity with China.

As these new companies in Indonesia and Southeast Asia see their ambitions and their funding needs grow, the next natural step is for them to seek international capital - and that’s where public markets have a role to play, providing vital fundraising platforms, attracting diverse investors, supporting innovation, and propelling companies forward.

It’s a role that HKEX is well-positioned to play, supporting the growth ambitions of Southeast Asian late-stage startups through dual primary listings.

HKEX has also grown in stature in recent years as a home for new economy companies. 

Listing reforms since 2018 have opened access to capital for new economy companies, helping raise close to HK$1 trillion from more than 300 listings, including 128 floats by biotech and healthcare companies, with 64 pre-revenue biotech companies listing on our markets.

HKEX’s China connectivity is also a unique and unrivalled proposition for issuers.

Now celebrating the tenth anniversary of the launch of Stock Connect in 2014, our Connect programmes have expanded to include Bond Connect, Swap Connect and ETFs, and we are excited about the inclusion of international companies into Southbound Stock Connect announced in 2023, which connects Hong Kong-listed issuers with large, uncorrelated international and onshore China capital pools.

Beyond the Connect programmes, we are also growing our connectivity with Southeast Asia.

In July 2023, we signed an MoU with Indonesia Stock Exchange (IDX) and added it to HKEX’s list of recognised stock exchanges in November 2023, allowing IDX-listed companies to apply for secondary listings in Hong Kong.

We are excited to see what this collaboration with IDX and our growing connectivity with Southeast Asia can bring.

Magic happens when the right people, ideas and capital are connected.

At HKEX, we see our markets not just as capital raising platforms - we see them as hubs that connect capital with ideas, innovation and opportunity, and with the gathering trends in Southeast Asia, the prospects in front of us are exciting.