About 115 to 125 companies are expected to launch initial public offerings in Hong Kong next year, raising about HK$260 billion to HK$280 billion (US$33.3 billion to US$35.9 billion), Deloitte Touche Tohmatsu said.
On the other hand, about 380 to 420 companies are likely to list on the mainland stock markets, raising 230 billion to 260 billion yuan (US$35.5 billion to US$40.1 billion), Deloitte partner Edward Au told the Hong Kong Economic Journal.
Already in the Hong Kong IPO pipeline are close to 10 companies with each raising over US$1 billion and another eight companies seeking US$500 million to US$1 billion, Au said.
However, the new trading halt mechanism in the mainland and another potential interest rate hike in the United States in March or April are likely to affect investor sentiment in Hong Kong in the first quarter, he said.
Chinese companies have accounted for almost 90 percent of the fundraising size of the Hong Kong IPO market this year, representing more than 55 percent of the newly listed firms.
Au said Chinese companies will still dominate the market next year, with most of the new counters coming from consumer and retail, real estate, energy saving and environmental protection, as well as financial services sectors.
Many of the IPOs will also come from state-owned enterprises, he added.
– Contact us at [email protected]