Investor Relationship Management Services in China and Hong Kong
Abstract
Although there are more than 2,500 listed corporations in China and Hong Kong, the market for investor relationship management services is limited. Corporations listed on overseas exchanges such as Nasdaq spend appreciably more on IR management services than corporates listed on Greater China exchanges.
In a new report, Investor Relationship Management Services in China and Hong Kong, Celent examines the opportunities, challenges, and entry strategies of the IR management services market.
The Chinese IR management services market has two major customer segments: corporations listed on Greater China exchanges and corporates listed in the US. Greater China listings are growing only 5% annually; partly as a result of that, spending on IR solutions by the first customer segment will be moderate in the medium term. The second customer segment requires more functionality from an IR solution and so spends more on IRM services. For the US exchanges, Chinese corporations are the largest source for IPOs outside of America itself, and China has high growth in the number of IPOs. The Hong Kong market is less mature than the US and Europe, and has space for development in real time intelligence solutions to better understand investors, news distribution services, and services to support the Board and Directors.
“In China’s IRM solutions market, the significant customers are the Nasdaq and NYSE listed corporates.” says Hua Zhang, analyst with Celent’s Asia Financial Services group and coauthor of the report. “International providers have a fuller menu of services. Local providers tend to be strong in communications services but weak in intelligence.”
The 30-page report contains two tables and seven figures.