Name: SCMP
Telephone: +852-2680-8888

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

knowledgeQuestion

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Enoch Yiu

Hong Kong could potentially climb back into the top three among global initial public offering (IPO) markets by the end of the year, as analysts believe the recent bull run is set to attract some massive deals.
A total of 42 companies raised US$7.14 billion via IPOs on the main board of the Hong Kong stock exchange in the year’s first nine months, double the total from a year earlier, according to London Stock Exchange Group (LSEG) data released on Friday.
The increased fundraising helped Hong Kong to rise to fifth on the global IPO league table in September, from 13th in June.
“Hong Kong could rise further to become the third- or fourth-largest IPO market worldwide this year, as more large deals tap the increased valuations amid the recent market bull run,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.
The IPO fundraising amount in 2025 will have further room for improvement, he added.
The Hang Seng Index on Friday rose above the 20,000 level to the highest close since April 2023, following a renewed sense of optimism from investors after Beijing’s massive stimulus to rejuvenate the economy, markets and the property sector. Analysts said a significant increase in trading volume will have a stimulating effect on enterprises wanting to go public.
The US$7.14 billion raised in the first nine months in Hong Kong has already exceeded the US$5.9 billion in 2023, when the city ranked eighth on the IPO table, LSEG data showed.


However, the city’s main board trails the leaders Nasdaq and New York Stock Exchange, where companies mopped up US$14.6 billion and US$13 billion, respectively, in the nine-month period.
However, LSEG data showed that Hong Kong is not far from third-ranked National Stock Exchange of India at US$8.96 billion and Bombay Stock Exchange at fourth with US$7.9 billion.
Hong Kong, which was the world’s top IPO market seven times between 2009 and 2019, has suffered from a dry spell in recent years because of the high interest rate environment and low valuations of Chinese stocks.
“The Hong Kong IPO market has seen the bottom, and the outlook is now brightening,” said Louis Wong, executive director of Phillip Capital Management (Hong Kong).
Hong Kong’s rise in the IPO sweepstakes was mainly because of home appliance maker Midea Group, which raised US$4.6 billion after exercising an overallotment option. It was the largest IPO in Hong Kong in three years and the second-largest worldwide this year.
In the July to September quarter, fundraising in Hong Kong stood at US$5.5 billion, a threefold increase from the first half. It was also the highest since the third quarter of 2022 when US$6.54 billion was raised, LSEG data showed.
The outlook is positive as there are currently 100 companies in the queue for listing, with some candidates likely to raise over US$1 billion, Bonnie Chan Yiting, CEO of bourse operator Hong Kong Exchanges and Clearing, said last week.
On Wednesday, the accounting firm Deloitte said it expected IPO fundraising in Hong Kong to rise to as much as HK$80 billion (US$10.25 billion) for the whole year.
The Hong Kong Monetary Authority’s move to follow the US Federal Reserve’s rate cut last week will also help the IPO market, said Arnold Tam, chief analyst at Futu Securities.
“With the Fed’s interest-rate cut and a series of economic stimulus policies from China, the atmosphere in the Hong Kong stock market showed significant improvement in September,” Tam said. “The market has begun to reassess the valuation of Chinese stocks, with valuation adjustments becoming a major reason for the upwards trend in the current market.”
Hong Kong’s IPO market started to recover after the China Securities Regulatory Commission in April announced a range of measures to support the city’s capital market, including allowing large mainland companies to list here, said lawmaker Robert Lee Wai-wang, who is also the CEO of Grand Capital Holdings, a financial services firm.
Globally, IPO proceeds declined 22 per cent to US$76 billion in the year to September, the lowest nine-month total since the 2009 global financial crisis, LSEG data showed.
Shanghai Star Market, which topped the table this time last year, plunged to 20th spot with just nine new listings raising US$999 million.
Shenzhen’s ChiNext fell from second place to 13th, with 26 new listings raising US$1.89 billion in the first nine months.
Shanghai Stock Exchange’s main board ranked 15th, with 12 IPOs raising US$1.6 billion.


Hong Kong could regain top 3 IPO ranking by year-end after jumping to fifth in September

Chinese AI firm Chongqing Terminus Smart Technology files papers for Hong Kong IPO

Shein makes rare job cuts in Singapore as London IPO remains in limbo

Hong Kong overtakes Singapore as Asia’s top financial centre, influential ranking shows

Hong Kong stock exchange’s IPO fortunes have picked up in recent weeks. Photo: Bloomberg

Hong Kong IPO market’s ‘very positive momentum’ set to build, HKEX CEO says

Bonnie Chan Yiting, CEO of Hong Kong Exchanges and Clearing. Photo: Dickson Lee

The logo of Hong Kong bourse operator Hong Kong Exchanges and Clearing is seen at its headquarters in Central on June 5, 2024. Photo: Edmond So

Midea prices Hong Kong IPO – biggest in 3 years – at top of range to raise US$3.46 billion

Exchange Square in Central is home of the city’s stock exchange operator. Photo: Jonathan Wong

Office buildings of Midea Group in Foshan, in southern China’s Guangdong province, pictured on February 17, 2024. Photo: Simon Song

HKEX hires Johnson Chui from Nomura to bring overseas IPOs to Hong Kong

About half of the HKEX’s 2,600 listed companies are from mainland China, which account for 80 per cent of the market’s turnover. Photo: Edmond So

Johnson Chui joins HKEX as managing director and head of global issuer services on Sepetmebr 2. Photo: HKEX

Hong Kong eases listing thresholds for tech firms, SPAC deals in fresh tonic for IPO market

Investors at a forum at HKEX’s head office in Central. Photo: Edmond So

Katherine Ng, HKEX’s head of listing (left) with other key executives during Black Sesame’s IPO ceremony in August 2024. Photo: Jonathan Wong

HKEX reports its best second quarter on record as IPOs, stock trading revive in Hong Kong

A listing ceremony at the Connect Hall of the Hong Kong stock exchange on 8 August 2024. (L to R) Bonnie Chan Yi-ting, HKEX CEO; Shan Jizhang, co-founder and CEO of Black Sesame International Holding; Liu Weihong, co-founder and president of Black Sesame; Financial Secretary Paul Chan Mo-po; and Carlson Tong Ka-shing, HKEX chairman. Photo: Jonathan Wong.

HKEX CEO Bonnie Chan Yi-ting speaks at a press conference on the company’s 2024 interim results at HKEX in Central on August 21, 2024. Photo: Xiaomei Chen

Business

Banking & Finance

Markets

Money

News

Hong Kong

Hong Kong economy

IPOs in the city reached US$7.14 billion in the first nine months, exceeding last year’s total of US$5.9 billion, LSEG data shows


IPOs in the city reached US$7.14 billion in the first nine months, exceeding last year’s total of US$5.9 billion, LSEG data shows.
