Hong Kong and Chinese Mainland IPO Markets
2013 Review and 2014 Outlook
Analysis from the National Public Offering Group of Deloitte China indicated that Hong Kong became the world's second largest initial public offering (IPO) venue in 2013 with the number of IPOs of the year surpassed its last peak in 2010, thanks to the accelerated economic activities in China and the U.S. since September 2013 and six mega IPOs in the year. In 2013, Hong Kong saw 104 IPOs raising HK$168.9 billion, 68% and 88% up respectively when compared with 62 new listings raising HK$90 billion proceeds in 2012.
Supported by the promising outlook of the two largest aforementioned economies and a few mega IPOs in the pipeline, Hong Kong is likely to sustain its position as one of the top three IPOs venues globally in 2014 for the second consecutive year. H-share listings from state-owned energy and resources and pharmaceutical sectors and large consumer/ retail IPOs are expected to help Hong Kong complete 85-100 IPOs raising HK$170-210 billion.
At the same time, Deloitte anticipates Shanghai and Shenzhen stock exchanges to raise funds of similar level as that of Hong Kong for the year alongside the re-start of IPO activities on the Mainland from January 2014. About 200-230 companies which were under listing review are expected to complete their IPOs in 2014, raising about RMB150-170 billion. A majority of these potential IPOs (62%) will come from manufacturing (32%) and technology, media and telecommunications (30%) companies.