The Hong Kong stock market slipped to third place in global initial public offerings in the first half, losing its crown to New York. But analysts expect the imminent Alibaba mega-listing to bring back some excitement, reports Caixin Global.
Hong Kong Exchanges and Clearing embraced 76 new listing as of June 19, a drop from last year’s 101 offerings at that point. However, funds raised jumped 38% YoY to HK$69.5 billion yuan ($8.9 billion), thanks to some big deals including brokerage firm Shenwan Hongyuan’s $1.16 billion offering in April. It was the highest for the same period since 2015, according to accounting firm Deloitte.
Deloitte expects 200 IPOs to be completed in Hong Kong this year, raising between HK$180 billion and HK$250 billion.The consultancy said trade frictions may drive some U.S.-listed Chinese companies to consider a Hong Kong listing. The expansion of full convertibility, which allows mainland companies listed in Hong Kong to freely convert their nonlisted shares into H-shares, will attract more business, too.