Outlook Business Desk
So far this year, Hong Kong's stock market has surged by over 18%. This rise comes after a 3 years of range-bound movement. Two companies, Xiaomi and BYD are fueling this market revival
Xiaomi and BYD just raised over $11 billion in Hong Kong’s booming stock market. This wave of big-ticket share sales is signalling renewed investor confidence, pushing the stock market trajectory on a positive road.
Xiaomi has raised around $5.5 billion to fuel its electric vehicle expansion. The shares of the company have surged by over 57% on just year-to-date basis.
BYD, the Chinese electric vehicle giant, recently raised $5.6 billion via a share sale, marking one of the largest equity offerings in the sector. This move comes after BYD's profits surpassed Tesla's for the first time just a few months ago. So far this month, BYD shares have surged over 45%.
Xiaomi and BYD’s deals pushed Hong Kong’s follow-on offerings past $13 billion. This could be the biggest quarter for Hong Kong's equity market in four years.
The Hang Seng Index is now one of the world’s best-performing markets. On annual basis, the index has delivered returns of over 41%, surpassing that of S&P 500 and Nasdaq.