Hong Kong and Chinese Mainland IPO markets in 2013
Interim review and outlook
Driven by two mega listings in May, Hong Kong's IPO market saw improvement in the first half of 2013, raising a total fund of HK$39.5 billion from 22 IPOs, up 28% from HK$30.8 billion proceeds during the same period last year, according to the latest research released by Deloitte China's National Public Offering Group. On the other hand, Chinese Mainland's IPO market remained stagnant due to the special inspection on IPO applicants' 2012 financial reports conducted by the China Securities Regulatory Commission.
Looking ahead, Hong Kong's IPO market will be driven by measures from the 3rd Plenary Session of the 18th CPCCC in October and the performance of the Chinese economy. The go-global strategy of Chinese companies under the 12th Five-Year Plan and the relaxation of overseas listing requirements for Chinese companies are anticipated to continue to spur new listings in Hong Kong as well. By the end of 2013, the market is expected to have 65-75 new listings, raising HK$100-130 billion, a year-on-year increase of 4.8%-20.9% and an increase of 11.4%-44.8% respectively.
For the Mainland market, new IPOs are likely to be seen in the later part of the third quarter, following the completion of the consultation on the IPO reform in late June. About 30–40 new listings (74%-80.5% fewer than 2012) are expected to raise proceeds of approximately RMB40–50 billion (66.2%-75.8% less than 2012) for the entire year.