DECEMBERASIA BUSINESS OUTLOOK8NEWSROOMA security assistance agreement worth 1.6 billion yen ($10.65 million) was inked between Japan and the Philippines to strengthen the Southeast Asian country's maritime security and surveillance capabilities in the face of increased South China Sea tensions.Under its Overseas Security Assistance program, Japan will equip the Philippine Navy with coastal radar systems and rigid-hulled inflatable boats to improve its marine domain awareness capabilities. The project will be important for Japan's security and is anticipated to help preserve and improve regional security as well as the security of the key sea lanes, according to Japan's embassy in Manila.It further stated that equipment will be sent to the Philippine Air Force to support its air surveillance radar system, increasing monitoring capabilities."The strengthened security cooperation reflects Japan and the Philippines' shared commitment to regional peace and stability," the Philippines' Department of National Defense said in a statement. Japan and the Philippines struck a historic military agreement in July that facilitated military cooperation between the two nations by permitting the deployment of forces on each other's territory. Due to secondary listings from the Middle East and Mainland China, as well as an IPO revival in Asia following a difficult couple of years, dealmakers anticipate that the value and volume of Hong Kong's IPOs will continue to improve in 2025.In 2024, Hong Kong listings were dominated by initial public offerings (IPOs) of Mainland Chinese businesses, which accounted for 96 percent of proceeds, totaling $53.7 billion (US$6.9 billion) as of September 27, according to data from the London Stock Exchange Group.Irene Chu, a partner and head of New Economy and Life Sciences at KPMG Hong Kong said,"We expect the trend will continue [to 2025] because there's still a lot of upcoming mainland companies that are seeking IPO are expanding their businesses to overseas markets, Hong Kong would be an ideal location for them"She pointed out that although the average deal size increased to $1.3 billion from $700 million last year, Hong Kong has only had 60 deals, less than 70 for the entire year of 2023. Chu anticipates Chinese businesses with international listings to make their homecoming listings in 2025.On November 29, Hong Kong's benchmark Hang Seng Index closed at 19,423.61 points, over 13.9 percent from its close of 17,047.39 in 2023 and on track for its first annual increase since 2019.The Saudi Exchange, Abu Dhabi Securities Exchange, and Dubai Financial Market have been recognized by Hong Kong's stock exchange, which has made it possible for their companies to seek for a secondary listing in the city, Chu added, making the Middle East a developing market for Hong Kong. JAPAN, PHILIPPINES SIGN $10.65M DEAL TO BOOST MARITIME SECURITYIPO SURGE EXPECTED IN HONG KONG FOR 2025, LED BY CHINA & MIDDLE EAST DEALS
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