Whole Network Accounting Compliance Ethics executive pay SOX strategy

 

Hong Kong overtakes US for IPOs - don't blame SOX

Filed in archive SOX by leon on October 24, 2006

Hong Kong overtakes US for IPOs - don't blame SOX
The debate about whether SOX is driving companies away from the US market, and whether more are listing overseas because of SOX-related costs is about to move into over-drive. But the big shift will have nothing to do with Sarbanes-Oxley.

The news is that Hong Kong is overtaking New York and London as the world's biggest market for initial public offerings, reports the International Herald Tribune.

And one of the big drivers will be China's largest bank, Industrial and Commercial Bank of China, listing simultaneously on the Hong Kong and Shanghai exchanges and raisinglinks an expected $22 billion

This surpasses the previous record holder, NTT Mobile Communications of Japan in 1998 which was floated for $18.4 billion. And that was during the tech-stock boom.

It's also a big shift for China. It's not only a global first in terms of size but it's also the first time there will be a simultaneous float on the two exchanges. And it highlights the development of the country's banking sector which is the underbelly of China's breakneck growth. It's also the tripwire given China's inability to deal with the official corruption that has come with the economic boom.

But what's important here is that the US stock market is being eclipsed by the forces of globalisation, not the costs of Sarbanes-Oxley. It's about the privatisation of a state-owned company with the Chinese Government selling off 14.8 per cent of the bank's capital. The choice of jurisdiction should come as no surprise.

And it's only going to get worse. New York and London have become fat and complacent and are likely to be replaced as financial hubs, writes Matthew Lynn at Bloomberg.

Zurich or Dublin could take up the challenge. Even eastern markets like Riga, Prague or Budapest looking for some niche business might create some problems.

The lesson for America: it's a big world out there, get used to it.





Permalink: Hong Kong overtakes US for IPOs - don't blame SOX
Tags: Hong  Kong  IPOs  hong  kong  china  hong+kong  ipos+blame  overtakes+ipos 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/40029

Related Entries:

China IPOs Surge in Hong Kong - 15 May 2006

Oxfam slams Hong Kong garment industry - 29 November 2006

Hong Kong Hide-Away - 02 July 2007

Lost (or Found) in Hong Kong - 23 August 2007





RSSrss   | See all blog subscribe options
Google google   |   What is RSS?
Yahoo! yahoo
Addthis Subscribe using any feed reader!
Bloglines Bloglines
Newsletter
Grouptivity

Use the search to look for other interesting posts



 
  • Advertise with us

  • Learn more about our advertising options or email advertising - at - creative-weblogging.com or give us a call at +1 (650) 331 4900.




  • Other blogs in the same channel in the Creative Weblogging Network







 

Tagcloud: Accounting boards of directors Compliance corporate crime corporate governance corporate reputation Ethics events executive pay litigation markets regulators risk shareholder activism SOX Sponsored Blog strategy