Hong Kong named 5th largest IPO market

Hong Kong IPOs remained resilient in Q1 2020.

Hong Kong’s Stock Exchange took 5th place in terms of posting the largest initial public offering (IPO) funds raised, according to Deloitte China's National Public Offering Group’s report.

Hong Kong's IPO market continued to thrive in Q1 2020 despite the COVID-19 pandemic.

As of 31 March, Hong Kong recorded $14.1b in proceeds raised from 37 new listings, representing a fall of 31% from the $20.4b in Q1 2019.

The report predicts that Hong Kong will have about 160 IPOs raising $160b-$220b for the full year. New listings from life science and pharmaceutical and TMT companies are expected to be the market spotlights.

Meanwhile, the mainland IPO market is also doing well, seeing a 65% YoY growth through 51 new listings, soaring 205% YoY and raising $85.3b (RMB78.1b). Shanghai Stock Exchange placed 1st in IPO funds raised.

Deloitte expects that IPO activity could swiftly become even more active through quantitative easing, economic stimulus and relief measures introduced by different countries, stimulating the global capital market once COVID-19 is dispelled.

Major reforms are also set to make both capital markets more attractive for potential IPO candidates in the longer run.