Despite ongoing turmoil and political uncertainty, Hong Kong will continue to rank among the top three financial centers globally for initial public offerings.
180 companies are expected to raise up to HK$260 billion ($33.4 billion), according to an «SCMP» report citing a PwC outlook for 2020. Whilst this is 17.6 percent down compared to 2018’s $40.3 billion – the highest amount raised in a single year since 2010 – it is in line with averages in the last 10 years.
«The listing regulation reforms in April 2018, including the weighted voting rights and biotechnology listing regulations reform, have not only enhanced the diversification of Hong Kong’s capital market but laid an important foundation for the Hong Kong IPO market,» said Eddie Wong, partner at PwC Hong Kong’s IPO and capital markets services.
Diversified Bourse
PwC highlighted the ability of Hong Kong to attract a diversified mix of firms to list which helps bolster the city’s strength as a leading financial center. PwC’s Wong noted that 23 foreign companies successfully listed in Hong Kong in 2019 and that 2020 could see an increase in such listings. In addition, the outlook is also bright for listings involving «new economy» firms involved in disruptive and emerging sectors.
«In the long run, we are very confident that Hong Kong will continue to be the best financing platform in the region, as we predict that more new economy companies [will] list here,» explained Benson Wong, PwC Hong Kong’s entrepreneur group leader. «This will help Hong Kong continue to establish its position as the most important Asian IPO fundraising hub.»
PwC also forecasted that China’s IPO market will generate similar figures to 2019 with expectations of 220 new listings to raise 250 billion yuan ($35.9 billion) in 2020.
