Funds raised on Hong Kong stock market fall to lowest in a decade

The total funds raised on the Hong Kong stock market in 2017 dropped to the lowest in almost a decade as the city slipped down the global IPO league table.

Just US$35 billion was raised during the year, down 15 per cent from 2016 and the smallest amount since the financial crisis in 2008, according to data from Thomson Reuters.

This was despite the benchmark Hang Seng Index rallying 34 per cent as of December 22, the strongest annual growth since 2009 at 52 per cent.

However, the surge in share prices has not translated to more new listings or post-listing fundraising.

The total funds raised – that includes the sum raised from initial public offerings, rights issues or placements on the stock market – was the lowest since 2008 when only US$20 billion was raised, the Thomson Reuters data showed.

The funds raised from IPO in Hong Kong dropped to US$13.87 billion, down 45 per cent from 2016. That is the smallest amount raised from IPO since 2012 when the total was US$11.28 billion, the Thomson Reuters data showed.