Hong Kong’s IPO growth awaits in 2025 as regulatory increase, rates of interest align, bankers say

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The outlook for Hong Kong’s preliminary public providing (IPO) market is anticipated to brighten subsequent yr on the again of decrease rates of interest and stronger regulatory assist, in accordance with deal makers.

IPO quantity within the metropolis might rise by 70 per cent to HK$150 billion (US$19.3 billion), from HK$87.6 billion this yr, in accordance with a forecast by Deloitte, which has been collating town’s IPO information since 2011. Chinese language corporations’ secondary listings will contribute a good portion subsequent yr, constructing on a latest pickup in such offers.

“The general IPO market sentiment in 2025 ought to enhance for a number of causes,” mentioned John Lee Chen-kwok, vice-chairman and co-head of Asia protection at UBS. He pointed to the continued easing of the rate of interest cycle as conducive for the fairness markets, and the sturdy assist from regulators relating to itemizing reforms and inspiring mainland China A-share corporations to go for H-share itemizing in Hong Kong.

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The Swiss funding financial institution topped the Hong Kong IPO bookrunners’ league desk amongst worldwide banks this yr with a market share of 6.75 per cent, in accordance with information from the London Inventory Change Group.

John Lee, vice-chairman and co-head of Asia protection at UBS. Photograph: Jonathan Wong alt=John Lee, vice-chairman and co-head of Asia protection at UBS. Photograph: Jonathan Wong>

“The A-share listed corporations have already got an present shareholder base,” mentioned Lee. “From a list perspective in Hong Kong, it is going to be simpler than unlisted corporations.”

He added that the A-to-H theme might account for about 40 to 50 per cent of the whole first-time inventory choices within the metropolis subsequent yr.

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Kenneth Chow, Citigroup‘s Asia head of fairness capital markets origination and merchandise, echoed the sentiment, saying that the A-to-H theme can be massive because the authorities have streamlined the approval course of to make the itemizing timetable extra predictable.

(L to R) Katherine Ng, HKEX’s head of itemizing; Wilfred Yiu, HKEX’s deputy CEO, co-chief working officer and co-head of markets; Alpha Lau, director normal of funding promotion at InvestHK; Bonnie Chan Yiting, HKEX CEO; Shan Jizhang, co-founder and CEO of Black Sesame Worldwide Holding; Liu Weihong, co-founder and president of Black Sesame; Monetary Secretary Paul Chan Mo-po; Carlson Tong Ka-shing, HKEX chairman, and Dong Solar, Secretary for Innovation, Expertise and Business, on the Black Sesame Worldwide Holdings Restricted’s itemizing ceremony on the HKEX on 8 August 2024. Photograph: Jonathan Wong alt=(L to R) Katherine Ng, HKEX’s head of itemizing; Wilfred Yiu, HKEX’s deputy CEO, co-chief working officer and co-head of markets; Alpha Lau, director normal of funding promotion at InvestHK; Bonnie Chan Yiting, HKEX CEO; Shan Jizhang, co-founder and CEO of Black Sesame Worldwide Holding; Liu Weihong, co-founder and president of Black Sesame; Monetary Secretary Paul Chan Mo-po; Carlson Tong Ka-shing, HKEX chairman, and Dong Solar, Secretary for Innovation, Expertise and Business, on the Black Sesame Worldwide Holdings Restricted’s itemizing ceremony on the HKEX on 8 August 2024. Photograph: Jonathan Wong>

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