J.P. Morgan: SpaceX's super IPO is unlikely to shake Asia, Hong Kong's IPO is unlikely to significantly cool in the short term.

SpaceX's IPO fundraising may reach $75 billion, potentially surpassing the $29.4 billion IPO record set by Saudi Aramco in 2019, making it the largest IPO globally. The attention is on whether this potential "super IPO" will impact the fund availability in the Asian markets. JPMorgan believes that even with such large transactions, global funds are unlikely to quickly concentrate in a single market. Paul Uren, head of JPMorgan's Asia-Pacific investment banking, stated that global investors are still seeking to diversify their asset allocation across different regions and industries. A single large transaction may not immediately weaken the fundraising environment in other markets, and the investment demand in global capital markets as a whole remains strong. In other words, if SpaceX goes public, it is more likely to attract some funds specializing in investing in US technology and growth stocks, rather than directly "siphoning off" new stock funds in the Hong Kong market. Looking at the Hong Kong market, IPO fundamentals remain positive. HKEx data shows that there are currently about 500 companies queuing up for an IPO in Hong Kong, a significant increase from around 300 at the end of last year. Among them, A-share listed companies, in order to broaden their base of overseas investors and connect with global capital, are actively evaluating Hong Kong listings, which is seen as one of the main factors driving the increase in queuing companies. In terms of issuance structure, last year, A-share listed companies that went to Hong Kong to issue H-shares, the size of the issuance was close to half of the total amount of IPOs in Hong Kong. Paul Uren stated that many Chinese companies hope to expand their investor base, and Hong Kong IPOs are seen as an efficient channel to achieve this goal. Performance data also support the Hong Kong IPO market. LSEG Data & Analytics data shows that in the first quarter of this year, a total of 37 companies completed listings on the main board of HKEx, raising a total of $13.26 billion, a 453% increase year-on-year. During the same period, Nasdaq had 18 IPOs raising $5.65 billion, and NYSE had 9 IPOs raising $4.95 billion. The market expects that even if Hong Kong may lose the top spot in global IPO fundraising to New York this year, its fundraising competitiveness is likely to remain second globally. Last year, Hong Kong ranked first in the global IPO market with large listings of mainland Chinese companies. International investors' interest is not limited to a single IPO project. JPMorgan believes that overseas investors remain strong in their interest in Chinese technology companies, especially in sectors such as artificial intelligence, Siasun Robot & Automation, and healthcare. The key variable in the market is not whether SpaceX goes public, but how global funds will be redistributed across different markets and industries. JPMorgan predicts that even with the emergence of large IPOs, the listing demand in Hong Kong and the international interest in Chinese technology companies are unlikely to significantly cool down in the short term.