Hong Kong’s stock exchange is expected to rank second only to the New York Stock Exchange this year in total value of initial public offerings, with HK$162 billion (US$20.5 billion) raised in 2013, Ernst & Young (E&Y) said Monday.
The capital raised in the 96 deals in Hong Kong is estimated to be 80 percent higher than last year’s total. And it’s tipped to grow further. Hong Kong will be able to raise HK$180 billion in more than 100 initial public offerings in 2014, E&Y Asia-Pacific IPO leader Ringo Choi said in Hong Kong Monday.
Choi said the main trends next year will be back-door listings of real estate companies, spinoffs of Hong Kong firms, and more Hong Kong IPOs by mainland city-level commercial banks.
He also said that with China’s IPO market likely to resume in 2014, the mainland market may rank among the top three worldwide. Industrials; technology, media and telecommunications; and retail and consumer products are the top three sectors for mainland listings.
But Hong Kong is still a competitive stock exchange in terms of price-to-earnings ratio, liquidity, credibility and the number of market analysts, Choi said.
The first 50 listing candidates in the A-share market are expected to raise a total of 44 billion yuan early next year, 62 percent of which will be contributed by Shaanxi Coal Industry Co. Ltd. and China Postal Express and Logistics Co. Ltd., according to E&Y.
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