Hong Kong's stock exchange experienced a resurgence in initial public offering (IPO) activity, marking the first increase in deal values after three consecutive years of decline. The resurgence is attributed to a combination of factors, including increased investor confidence following Beijing's commitment to supporting the offshore market and a ramped-up stimulus package that has fueled companies' interest in raising capital.
Hong Kong stock exchange saw new listings jump for the first time after three consecutive years of declines, in terms of deal values. Despite some 'signs of life', only when 'we see continued improvement in the onshore economy and geopolitical tensions continue to soften' can one expect a further pickup in Hong Kong's IPO activities, said Andy Maynard, managing director and head of equities at China Renaissance.
Hong Kong recorded a notable pickup in listing activities this year, as more Chinese companies turned to the city to raise capital and investors grew optimistic after Beijing pledged to support the offshore market.The Hong Kong stock exchange saw new listings jump for the first time after three consecutive years of declines, in terms of deal values, according to data compiled by Dealogic. That included initial public offerings and additional follow-on share sales. The city's bourse raised a combined $10.65 billion across 63 deals this year, marking a significant increase of more than 80% compared to the $5.89 billion raised across 67 in 2023 — which was the lowest since 2001, according to Dealogic.As another sign that companies and investors are regaining confidence in Hong Kong's market, the average deal size nearly doubled from the previous year to $169 million. The number of firms seeking public flotations in Hong Kong started picking up in the second half of this year, as the Beijing's ramped-up stimulus package has further fueled companies' interest in raising capital in the offshore city and lured back some foreign capital funds, experts said. 'There are a lot of pent-up demand for capital raising' since 2022, when the city's economy sought to shake off a pandemic-induced slowdown, Andy Maynard, managing director and head of equities at China Renaissance said in an emai
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