IPO growth thanks to the opening of China
Bankers and analysts are anticipating a recovery in the Asian financial hub of Hong Kong following the worst IPO since the financial crisis as China moves forward with plans to reopen.
The city’s revenue in 2022 was $12.9 billion, a 70% year-over-year fall that was more than Asia Pacific’s 29% decline.
Mainland China, India, and Thailand listings should remain active.
Transactions in Hong Kong have decreased this year as a result of Beijing’s regulatory limitations, the COVID policy, the housing crisis, and worries about an increase in global interest rates.
Although market observers highlighted numerous medium-sized acquisitions in Hong Kong in the fourth quarter with rising optimism about the Chinese economy, the comeback of major offers may take some time.
As China pledged support for the real estate industry, encouraging optimism for recovery, additional share sales increased in the fourth quarter. An increase in listings and equity sales is also considered beneficial for the IPO.