Hong Kong was the largest fundraising hub for mainland enterprises in the first 11 months of 2012, according to statistics from China Venture.
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Its data showed that as many as 41 mainland enterprises were listed on the Hong Kong Stock Exchange's main board and raised 36.24 billion yuan ($5.81 billion) from January to November, 94 percent of the total amount raised by mainland enterprises during the same period.
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The money mainland businesses raised in Hong Kong made up a large part of all capital raised through initial public offerings in the special administrative region. As many as 62 new listings brought in HK$89.4 billion ($11.53 billion) in 2012, according to a report by the professional services firm Deloitte Touche Tohmatsu Ltd.
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Analysts said high borrowing costs, long waiting times and high fundraising standards in the Chinese mainland are the biggest reasons why domestic enterprises favor the overseas market.
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The annual interest rate on money borrowed from banks is usually around 7 percent in the mainland, which is too high for many enterprises, especially small and medium-sized ones, said Ma Yaping, stock market analyst with Shanghai Jufeng Investment and Management Co Ltd. The rate can be as low as 2 percent in Hong Kong, Ma said.