HK poised to be toppled from top of global IPO league table for first time in 2 years

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Hong Kong poised to be toppled from top of global IPO league table for first time in two years
Lack of blockbuster deals leads to 77 per cent slump in the amount of listing proceeds in the third quarter

by Enoch Yiu
PUBLISHED : Monday, 25 September, 2017, 8:02am

Hong Kong is poised to lose its crown as the world’s top market for initial public offerings this year after seeing the value of deals plummet 77 per cent in the third quarter in the absence of ­blockbuster listings.

During the period, US$2.69 billion was raised from 32 deals on both the main board and the Growth Enterprise Market, data from Thomson Reuters showed, a sharp fall from the US$11.74 billion seen a year earlier, when Postal Savings Bank of China raised US$7.3 billion in the world’s largest flotation since 2014.

For the first nine months of this year, there were a total of 98 listings on the two boards to raise US$9.14 billion, down 52.2 per cent year on year.

The main board saw 50 deals worth US$8.65 billion to take a 7.2 per cent global share, ranking it third among the world’s top stock exchanges by the amount of proceeds raised. It had topped the global rankings for the past two years.

More details in http://www.scmp.com/business/companies/a...able-first

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Until about 3 years ago, the China economy was growing at 10% per year and that has fallen to 7% or less . And after the 10% growth was gone, the RMB which had been on rising trend in Fx markets , has fallen back to lower value .

During the last 2 years , we have watched many China based Investment funds seeking to buy assets in US and EU countries whilst this year we watch the quadrupling rise of Evergrande share price as this major China property company seeks share listing on the Shenzhen stock market.

So I believe the HK IPO market cannot stay in no. 1 position when Shenzhen market can offer higher valuation.