The continuing growth of the mainland economy helps Hong Kong become a center for initial public offerings and other fund-raising activities by the Chinese mainland enterprises, according to Hong Kong Monetary Authority (HKMA).

 

In his latest Viewpoint article published Thursday on the authority's website, HKMA's chief executive Joseph Yam said several large initial public offerings were organized successfully in Hong Kong, with no excessive volatility in the interbank rates and hiccups in the interbank payment system on the payment and refund days.

 

"One interesting phenomenon observed during the course of the large initial public offering activities in Hong Kong is that, with global financial markets awash with liquidity, whenever there is new supply of quality financial instruments in a market of international standing, attracting international investment funds is not a problem," he said.

 

He hopes these large initial public offerings serve to consolidate the status of Hong Kong as "the preferred initial public offering center for mainland enterprises".

 

Noting the mainland has become increasingly integrated with the rest of the world and its economy keeps growing at a brisk pace, Yam said there will be more and more mainland enterprises achieving success in their own fields and attaining international status.

 

"The sustainability of Hong Kong as the initial public offering center for mainland enterprises depends, I think, on whether we can satisfy investor demand on the mainland," he said.

 

(Xinhua News Agency November 3, 2006)