Editorial | Hong Kong braces for an IPO revival after ringing in necessary changes
Reforms, mainland China support and easing of interest rate environment raise hopes of comeback by Hong Kong bourse
An IPO comeback is on the cards for Hong Kong this year. A combination of local stock listing reforms, policy support from mainland regulators and an easing of the interest rate environment have investors and bankers gearing up for a revival.
Insiders expect the upturn in initial public offerings to continue, with hopeful signs that the city might regain its old glory days as the world’s top IPO funding hub.
It was No 1 on seven occasions between 2009 and 2019, until its recent decline. Talk of an upturn is excellent news since the local stock market has been in the doldrums for some time.
Alarm bells were ringing for much of last year as the IPO business was plodding on with smallish deals through the first half, only to stage a significant resurgence thereafter.
That helped lift the city back to the fifth place in global rankings – after India’s two main bourses, and the Nasdaq and New York Stock Exchange in the United States – or third in terms of national rankings.
Proposed changes on public floats and share allocations will make Hong Kong a more competitive place for listings against other exchanges by drawing more companies and institutional investors.
