Hong Kong’s 2021 IPO ranking slips to fourth place as fundraising shriveled by 20 per cent amid China’s regulatory clampdown
- HKEX data confirms forecast by accounting firms such as KPMG, which predicted earlier that the Hong Kong exchange would not be in top three IPO venues globally this year
- 92 companies raised US$40.9 billion as of December 17 this year, 20 per cent less than the decade-high recorded in 2020 as a whole
Several accounting firms, including KPMG, Ernst and Young and Deloitte had forecast earlier that the Hong Kong stock exchange would not make it into the top three IPO venues globally this year and was likely to drop to fourth place from second last year. Data from bourse operator Hong Kong Exchanges and Clearing (HKEX) confirmed this prediction on Tuesday.
A total of 92 companies raised HK$318.9 billion (US$40.88 billion) as of December 17 this year, 20 per cent less than the decade-high of US$50.9 billion recorded in 2020 as a whole, HKEX data shows.
“IPOs in Hong Kong have either shifted their timetable beyond this year, or scaled down their fundraising size since the third quarter, on the back of market and regulatory uncertainties [emanating] from China,” said Louis Lau, a Hong Kong-based partner with the capital markets advisory group at KPMG China.