Hong Kong and Mainland IPO Markets
2012 Review and 2013 Outlook
According to the National Public Offering Group of Deloitte China, both the initial public offering (IPO) markets of Hong Kong and the Chinese Mainland (referred hereinafter as the 'A-share market') in 2012 saw the weakest performance since the financial tsunami in 2009.
With 62 new listings raising HK$89.8 billion, Hong Kong closed 2012 with the most lackluster performance since 2009. However, with the improved market sentiment and liquidity from economic stimulus programs from the U.S. Federal Reserve and the European Central Bank, the proceeds raised in the fourth quarter took up over half of the total proceeds raised of the year.
Hit by dampened investor confidence and waves of worsening corporate earnings announcements, the A-share IPO market had a record low in terms of deal flow and volume with 154 new listings and RMB103.4 billion respectively, since the resumption of IPOs in the market in 2009.
On the back of China's 12th Five-Year Plan and policies that drive new urbanization and domestic demand, Hong Kong is expected to have a moderate rebound with 70-80 new listings, raising around HK$100-150 billion in 2013. The deal flow and deal volume would be 13-29% and 12-68% higher when compared with 2012.
As for the Mainland market, under enhanced regulatory measures, about 150 companies are foreseen to raise approximately RMB100 billion through IPOs, both at about 3% less than those of 2012.