Hong Kong’s IPO market is looking up as pipeline grows, while mainland bourses to struggle amid regulatory curbs: Deloitte
- Hong Kong’s stock exchange could host 80 new listings in 2024 with estimated proceeds of HK$100 billion (US$12.8 billion), Deloitte China forecasts
- Some 155 listings in Shanghai, Shenzhen and Beijing are projected to generate as much as 166 billion yuan (US$22.9 billion) of proceeds in 2024: forecast
“We have witnessed an increase in listing applications, in particular from the artificial intelligence, life science and healthcare industries, which are important sectors,” said Edward Au, managing partner for the southern region at Deloitte China. Hong Kong remains a top choice of listing due to its global financial centre status and appealing market reforms, he added.
While many potential issuers are waiting for a rebound in market valuations, certain companies are committed to listing in Hong Kong based on their pressing fundraising needs to support their growth, he added after releasing the firm’s equity market outlook on Monday.
Hong Kong’s stock exchange could host 80 initial public offerings (IPOs) in 2024 with an estimated proceeds of HK$100 billion (US$12.8 billion), according to a forecast by Deloitte China. Stronger measures taken by Beijing to recharge the mainland economy and possible interest rate cuts in the US later this year, are supporting factors, it added.
The city made a sluggish start this year, with 12 IPOs generating HK$4.7 billion in proceeds, or a 30 per cent drop from a year earlier.