About 120 companies are expected to list in Hong Kong this year, raising as much as HK$200 billion (US$25.78 billion), PricewaterhouseCoopers (PwC) said in a report released on Monday.
As for the A-share market, PwC expects 200 new listings to raise about 130 billion yuan (US$20.9 billion), up from 78.6 billion yuan in 2014.
Small and medium-sized enterprises (SME) will dominate Hong Kong’s IPO market this year, while companies in retail and consumer products and services as well as financial services are likely to continue taking up a large portion of the IPO deals, it said.
With the reform of China’s economic structure, more information technology and high-tech companies are likely to list in Hong Kong in the coming years, Edmond Chan, co-head of capital market services at PwC Hong Kong, said at a media briefing.
The auditing giant believes Hong Kong’s IPO market will remain active and keep a steady growth in 2015.
“Although China is adjusting to a ’new normal’, even a moderate growth rate will let China continue to enjoy a significant margin over even the most optimistic scenario for the United States, while the long-expected message of a hike in interest rates by the US Federal Reserve has already been absorbed by the market, and thus, it won’t have much impact on the IPO market,” Chan said.
He said investors have an appetite for China concept stocks while the Shanghai-Hong Kong Stock Connect provides further incentives.
In 2014, 122 companies listed in Hong Kong, raising HK$227.8 billion, up 33 percent from HK$171.3 billion in 2013. That took the Hong Kong market to second place worldwide in terms of fundraising activity.
Among the Big Four, PwC, KPMG and Ernst & Young forecast new listings in Hong Kong will raise HK$200 billion this year, while Deloitte expects a range of HK$180 billion to HK$220 billion.
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