Hong Kong might yet shrug off 63 per cent third-quarter decline in IPOs to regain crown of top market globally this year, analysts say
- City has been the world’s largest market for initial public offerings six times over the past decade
- Hong Kong to benefit if the US decides to de-list Chinese companies, Hong Kong Securities Association says
Hong Kong, the world’s largest market for initial public offerings six times over the past decade, might still reclaim its crown from the Nasdaq in New York this year, analysts said.
Flotations in the city declined by 63 per cent during the third quarter amid protests that are in their fourth month now. But analysts feel the worst is over, and mega listings to come in the next few months might allow the Hong Kong stock exchange to catch up in the coming quarter, and reclaim its crown as the world’s largest IPO market.
“We have seen a very quiet summer, as many companies have held back IPOs. They want to wait for better valuations, when market sentiment improves,” said Kenny Ng Lai-yin, securities strategist at Everbright Sun Hung Kai.
“We believe the worst is over, as market sentiment has improved since September. Many companies will launch their IPOs before the end of December, before their current financial statements expire,” Ng said.
“Hong Kong will still have a chance to climb back to the top, as many listing hopefuls are preparing their IPOs for the fourth quarter,” said Gordon Tsui Luen-on, chairman of the Hong Kong Securities Association.
“This includes e-commerce giant Alibaba Group Holding, which many market players expect will raise up to US$15 billion in a secondary listing in Hong Kong,” he added. Alibaba owns the South China Morning Post.