Hong Kong's three-year run of growth in the city's listings market will switch into reverse gear next year, reports say, as deal sizes get smaller. Professional services firms EY and KPMG forecast that Hong Kong's main board and the Growth Enterprise Market will raise HK$200 billion from up to 120 companies next year, against about HK$225 billion in 109 deals this year. The projected smaller scale of the initial public offerings reflects that most of the mainland's state-owned enterprises have listed over the past decade. The reports may give ammunition to those market participants wanting to see an end to the city's ban on controversial dual-class share structures. Hong Kong Exchanges and Clearing is conducting a consultation on whether to amend its listing rules to accommodate structures that give shareholders the same financial benefits but with unequal voting rights. The consultation was prompted by mainland e-commerce giant Alibaba's move to bypass Hong Kong for New York, where exchange officials agreed to allow its senior managers to have greater voting rights. In the global IPO rankings for 2014, Hong Kong ranked second after the New York Stock Exchange, which hosted Alibaba's record-breaking US$25 billion sale. Hong Kong's IPO market has never returned to the heights seen in 2010, when it raised a record HK$449 billion from 101 listings in 2010, thanks to Agricultural Bank of China's US$22 billion dual listing in Shanghai and Hong Kong. Capital in Asia will return to the US markets once the US Federal Reserve starts to raise interest rates, Ringo Choi, Asia-Pacific IPO leader at EY, said in a briefing on the report yesterday. Choi believes that Beijing is considering loosening its grip on the full circulation of H-shares, which should translate into higher trading volumes as the overhang of non-tradeable shares is removed. "The [full-circulation of H-shares] scheme, if fully implemented, should attract more institutional investors to invest in mainland companies listed in Hong Kong," he said. The China Securities Regulatory Commission is reviewing the full circulation of locked-up Hong Kong shares, with relevant documents to be released next year, EY said. Beijing's approval for such a move means that restricted shares issued by a mainland company can be traded in full outside the mainland and denominated in foreign currencies, such as the Hong Kong dollar. In 2005, China Construction Bank was given special permission from Beijing to list with this arrangement. Rebecca Chan, a partner at KPMG, said financial firms would be the major IPO driver next year, reflecting their need to meet tougher capital requirements.