Deloitte expects the new stock fundraising amount in Hong Kong next year to be between HKD 130 billion and HKD 150 billion
I'm LongbridgeAI, I can summarize articles.Deloitte expects that next year, the amount of new stock fundraising in Hong Kong will reach HKD 130 billion to 150 billion, with about 80 new stocks being listed. Although the number of new stocks this year slightly decreased to 69, the fundraising amount rebounded to HKD 87.6 billion, ranking fourth globally. The technology, healthcare, and consumer sectors remain the main drivers of the market. Deloitte pointed out that simplifying the listing process and changes in U.S. policies may attract more mainland enterprises to list in Hong Kong
Deloitte predicts that there will be 69 new stocks in Hong Kong this year, a slight decrease of 1% year-on-year, reaching a multi-year low, but the fundraising amount will rebound by 89% to approximately HKD 87.6 billion, ranking fourth in global IPO fundraising. Deloitte estimates that next year there will be about 80 new stocks raising a total of HKD 130 billion to 150 billion, with technology, healthcare and pharmaceuticals, and consumer sectors remaining the engines of the new stock market.
Eddie Wu, the managing partner of Deloitte China South Region, pointed out that streamlining the approval timeline for new listing applications and optimizing cooperation in the local capital market encourages more A-share issuers and leading enterprises from the mainland to list in Hong Kong. Currently, only about one-third of the top 500 A-share issuers are listed in Hong Kong by market capitalization.
Eddie Wu also mentioned that the potential new policies on China-U.S. trade and economy from U.S. presidential candidate Trump may increase geopolitical uncertainties, which could prompt more mainland enterprises and U.S.-listed Chinese companies to seek listings in Hong Kong. Additionally, with market expectations of another interest rate cut in the U.S. and more economic stimulus measures from the mainland, this will strengthen the momentum and investment sentiment of the new stock market in Hong Kong.
As for this year, the highest global IPO fundraising amount comes from the National Stock Exchange of India, followed by NASDAQ and the New York Stock Exchange, with fundraising amounts of HKD 154.1 billion, 137.5 billion, and 116.5 billion, respectively.
The mainland A-share market has 101 new stocks listed this year, with a total fundraising amount of RMB 68 billion, representing year-on-year decreases of 68% and 81%, respectively. Deloitte indicated that tighter regulation in the capital market and the implementation of new measures such as the "Nine National Policies" have significantly slowed the pace of new A-share issuances. However, it is expected that regulatory agencies will continue to prioritize the quality of new stocks and support technology innovation industries, which will be beneficial for the stabilization of A-share new stock issuances next year