Hong Kong to regain IPO crown this year, say PwC and Deloitte

Chinese artillery elephantine CATL was among the caller listings connected the Hong Kong Stock Exchange, with PwC saying the metropolis was expected to beryllium the IPO person this year. Photo: Peter PARKS / AFP/File
Source: AFP

Hong Kong is expected to pb the satellite successful IPO financing this twelvemonth contempt uncertainty from geopolitical tensions and commercialized tariffs, accountancy elephantine PwC said connected Wednesday.

The Chinese fiscal hub's capital market has rebounded powerfully this year, with dozens of Chinese companies piling into the metropolis to rise overseas superior contempt regulatory unit from Beijing and uncertainty implicit its nationalist information laws.

PricewaterhouseCoopers (PwC) said its statistic suggest astir 100 companies volition rise astatine slightest HK$200 cardinal ($25.5 billion) successful Hong Kong this year.

It said Hong Kong's IPO question has benefited mostly from argumentation enactment from the Chinese authorities and optimised listing rules by Hong Kong regulators that see streamlining support processes.

"The improved marketplace liquidity and rising planetary capitalist request for halfway Chinese assets besides drove marketplace activity," PwC's Hong Kong superior markets person Eddie Wong said successful a note.

The Hong Kong banal speech welcomed 44 IPOs by the extremity of June, according to PwC.

"We expect 2025 to beryllium the astir progressive fundraising twelvemonth for IPOs successful the past 4 years," said Diamantina Leong, PwC's Hong Kong superior markets services partner.

PwC said full proceeds raised successful Hong Kong jumped 701 percent to HK$107.1 cardinal (US$13.7 billion) compared to the aforesaid play past year.

In comparison, the New York Stock Exchange and Nasdaq person raised HK$55.3 cardinal ($7.0 billion) and HK$71.9 cardinal ($9.2 billion) successful IPOs respectively truthful acold this year, it said.

Hong Kong's IPO roar is expected to proceed into the archetypal fractional of adjacent year, Wong told reporters astatine a presentation.

Data from the Hong Kong banal speech showed it is processing much than 170 listing applications.

"We expect beardown momentum to continue, supported by respective mega deals," Wong said.

Many of the world's biggest fund-raisings by Chinese companies, including artillery elephantine CATL, pharmaceutical steadfast Jiangsu Hengrui and soy condiment shaper Foshan Haitian, kept up the buzz successful Hong Kong's superior markets.

Consulting steadfast Deloitte besides forecast successful a June study that Hong Kong would beryllium the IPO person this year, though its analysts warned that "adverse geopolitical oregon macroeconomic disruptions" could constrain optimism.

Chinese e-commerce titan Shein is switching to Hong Kong to implicit its debut aft failing to database successful New York and London, Bloomberg reported this year.

Hong Kong hopes to go the preferred listing level for planetary companies, "especially those that find it challenging to entree superior markets successful the US oregon Europe", the city's fiscal caput Paul Chan said past month.

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Source: AFP