Hong Kong's equity capital market is expected to enjoy strong growth this second half of the year, driven by an increasing number of sizeable initial public offerings and more issuances from listed companies.
In the wider Asia-Pacific market (excluding Japan), equity issuance was up 9 per cent to US$69.3 billion in the first six months of this year as volume and value picked up significantly in the second quarter, according to data provider Dealogic.
In Hong Kong, the offering market was weak in the first half, however, with just 12 issues raising HK$17 billion, a 66 per cent drop from the same period last year.
But Marshall Nicholson, a managing director at BOC International, believes Hong Kong issues are set to rebound in the second half.
'I believe the [listing] calendar will pick up substantially especially in September to December as many companies that put [initial offerings] on hold in the last 18 months will restart the listing process,' Mr Nicholson said.
'Equity and fixed income investors can make more money investing in Chinese and Hong Kong companies so we should continue to see strong cash flows into the region.'
Among the market developments highlighted in the Dealogic data were several large block trades by various financial institutions selling stakes in mainland banking stocks.
