IPOs likely to resume in H2
Updated: 2013-06-28 03:59
By Chen Jia (China Daily)
Hoffman Cheong, assurance leader of China North at Ernst & Young, said that Hong Kong has recorded a 26 percent increase in capital raised in the first half, compared with a year earlier.
"The stronger Hong Kong IPO market is due to stronger investor confidence, better economic fundamentals and supportive global monetary conditions," said Cheong.
"Recent market volatility has delayed some IPOs, but historically there were IPO windows in the last four months in Hong Kong, and we expect this trend to continue.
"Companies need to prepare earlier and be ready to move fast once a viable market window opens," he added.
Lin Guoen, a partner at Deloitte China, said that the Hong Kong IPO listing situation could be better than the first half, although economic volatility and competition from other foreign stock exchanges may increase challenges.
"Chinese enterprises still have a strong demand to raise funds from markets outside the mainland, and Hong Kong will be one of the most popular targets," Lin said.
The yuan's further internationalization and improved IPO listing procedures will support more enterprises from the mainland that are looking for opportunities in Hong Kong, he added.
According to Ernst & Young, global IPO activity has been stable in the second quarter, with 151 deals raising about $33.9 billion.
Global IPO activity has been up 40 percent in terms of deal value but down 3 percent in terms of deal numbers in the second quarter, compared with the first three months.