Hong Kong

Hong Kong has long been considered the Asia’s Financial Hub due to ease of doing business in the territory, as well as its status as the ‘gateway to China’ and the world’s largest offshore renminbi centre. Hong Kong is Asia’s largest asset management centre, with a combined fund management business worth HK$17.393tn. It also had the highest level of IPOs in the world during the first six months of 2016, with HK$43.5 billion raised through the Hong Kong Stock Exchange.

 

In 2017, 18 tech IPOs raised US$3.3 billion in Hong Kong, accounting for 20.2% of the pool, the second biggest source of floats. The fundraising also more than tripled compared with the average US$933 million from 2013 to 2016. For the nine tech and internet IPOs on the main board, the average public oversubscription rate was 367 times. Additionally, tech stocks jumped by an average 56% from the IPO price on the first day of trading, as compared to financial shares which only rose 5% on average on debut.

 

Hong Kong bankers are eyeing a slew of blockbuster IPOs from Chinese technology firms with a total market capitalization of some $500 billion over the next two years.

Shenzhen, People’s Republic of China

Before it was renamed in 1979,  Shenzhen was just a small fishing village called Bao'an County. That changed in 1979, when Shenzhen was promoted to city-status and in 1980 designated China’s first Special Economic Zone, and the population jumped from a mere 30,000 to more than 10 million today.

Today, Shenzhen goes by many names, the “world’s factory,” “Silicon Valley of Hardware”, “new Silicon Valley,” and the “maker’s dream city”. Shenzhen has a complete ecosystem that contains everything needed for all stages of electronics production all in one place. This has turned the city into a staging ground for large high-tech companies, rising startups, and independent innovators from all over the world looking to get their stuff made as efficiently as possible. Tech giants like Huawei, ZTE , and Tencent all got their starts here, and many more companies seem to be on the way up.

It is said that 90% of the world’s electronics are made in Shenzhen. With tens of thousands of factories, 5,000 product integrators, and thousands of design houses, this city has become a one-stop-shop for anything consisting of circuits, chips, LEDs, and touchscreens. Shenzhen is also home to 20% of China’s P.h.Ds, has the country’s highest rate of business owners, and has produced more billionaires than anywhere else in China.

© 2018 by Incubate Fund.  For Questions /  Contact us at honma@incubatefund.com or dave@incubatefund.com

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