According to KPMG, Hong Kong has regained its place among the top five worldwide IPO locations.
3 October 2024, Hong Kong (SAR), China (“Hong Kong”) – According to KPMG’s latest Chinese Mainland and Hong Kong IPO Markets 2024 Q3 review, Hong Kong has regained its position among the top five global IPO venues. This resurgence was largely driven by the listing of a major Chinese home appliance manufacturer during the quarter – the largest IPO in Hong Kong since 2022.
As of the third quarter of 2024, global IPO markets raised a total of USD 83.3 billion through 851 deals, reflecting declines of 21% in funds raised and 15% in the number of deals compared to the same period last year. US stock exchanges continued to lead globally in terms of funds raised, accounting for one-third of global IPO proceeds. The National Stock Exchange of India ranked third, while the Hong Kong Stock Exchange and Shanghai Stock Exchange ranked fourth and fifth respectively.
The Chinese mainland and Hong Kong stock markets have recently experienced their strongest weekly performances, fuelled by the government’s newly announced stimulus package. The strategic initiative is expected to enhance liquidity inflows, which could significantly boost the number of large IPOs in Hong Kong for the remainder of 2024 and beyond. As a result, Hong Kong is well-positioned to strengthen its standing in the global IPO rankings, showcasing its resilience and appeal as a leading fundraising hub.
In the A-share market, REIT listings have shown significant growth. Year-to-date, 16 REITs have raised a total of RMB 38.9 billion – a record for both the number of listings and funds raised since the first wave of listings in 2021. Notably, 8 of the top 10 largest A-share IPOs were REITs, with portfolios mainly comprising shopping malls and department stores. This surge follows the CSRC’s expansion of the REIT program in October 2023 to include ‘consumption-related infrastructure projects’, thereby broadening investment options for market participants.
However, overall A-share IPO activity has declined, with exchanges raising RMB 86.8 billion across 85 deals, representing a 74% decrease in funds raised and a 68% drop in deal volume compared to the same period last year. The Technology, Media, and Telecom (TMT) and Industrials sectors continued to dominate, accounting for 64% of the active pipeline.
Hong Kong IPO activities showed signs of recovery in the third quarter of 2024, raising HKD 55.6 billion through 45 IPOs, representing a 123% increase in funds raised and a 2% rise in the number of listings compared to the first three quarters of 2023. The consumer markets sector led in terms of funds raised, attributable to the listing of a large Chinese home appliance maker, which alone attracted HKD 35.7 billion – accounting for 64% of the total funds raised in Hong Kong year-to-date.
More than a year after the implementation of the listing regime for Specialist Technology Companies (Chapter 18C), the city witnessed another listing under this regime during the quarter. In response to market conditions, The Hong Kong Stock Exchange provisionally relaxed the listing requirements for Specialist Technologies Companies, a move designed to maintain the city’s appeal as a competitive capital market hub.
About KPMG China
KPMG China has offices located in 31 cities with over 14,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.
KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. KPMG was also the first among the Big Four in the Chinese Mainland to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG’s appointment for multidisciplinary services (including audit, tax and advisory) by some of China’s most prestigious companies.
Post Comment