Hong Kong skids to 10th among global IPO venues as funding falls to a 19-year low, but brokers hopeful about second half of 2022
- IPOs by 22 companies raised US$2.3 billion in the first half of the year, the lowest figure since 2003, according to Refinitiv
- Brokers said the tide may turn in the second half, noting that market sentiment has improved and more companies have filed for new listings
Hong Kong fell to 10th place on a global ranking of initial public offering (IPO) markets in the first half of 2022 by Refinitiv amid a 92.5 per cent slump in funds raised, but brokers believe the exchange can climb back to the top five with improved market sentiment.
The Hong Kong Exchanges and Clearing (HKEX) main board saw new listings by 22 companies raise US$2.3 billion in the first half of this year, the lowest total since the first half of 2003 yielded US$802.3 million, according to Refinitiv data released on Wednesday. This is the bourse’s lowest ranking in 20 years, since the first half of 2002 when it ranked 20th.
Poor market sentiment in the first half of the year saw the Hang Seng Index fall 6 per cent, weighed down by China’s regulatory crackdown on technology firms as well as Covid-19 lockdowns and disruptions in the first quarter.
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HKEX CEO Nicolas Aguzin on the future of Hong Kong’s capital market
Two of China’s IPO markets took top rankings: Shanghai’s Star Market is the top IPO market worldwide through the first half in terms of funds raised, at US$13.4 billion, 52 per cent higher than last year. Shenzhen ChiNext ranked second, followed by South Korea, thanks to LG Energy Solution’s US$10.7 billion IPO, which is the biggest IPO in the world so far this year, Refinitiv reported.
