Analysts: the number of IPOs in Hong Kong should grow in 2023
In 2022, the global stock market saw a decline in activity. Investors were in no hurry to invest and buy shares, and companies, aware of all the risks, postponed going public. As a result, the number of IPOs decreased significantly. For example, the volume of IPOs in Hong Kong in the year fell by 70% to almost $13 billion. Experts note that this figure is the worst in the history of the trading platform.
If we consider the situation in the Asia-Pacific region as a whole, the yield from listings decreased by 29%. Losses of the Hong Kong Stock Exchange and other neighboring sites offset the stock market in China, where in 2022 recorded a record number of proceeds from the IPO – 93.5 billion dollars.
Despite a disappointing year, experts predict that 2023 will be a more successful year for the Hong Kong exchange. One of the reasons for increased activity in the local market will be the lifting of anti-covid restrictions and the easing of outbreak prevention measures. In addition, Hong Kong’s economy is beginning to regain momentum after the pandemic-related slowdown. A number of companies have already filed for IPOs, and analysts are hopeful that their IPOs will take place soon.
Activity on the Hong Kong stock exchange picked up noticeably after the Chinese New Year holiday. Chinese companies that postponed their listings last year announced their intention to list this year. These include Xiamen International Bank, which has a good chance of raising $1.3 billion. Ruqi Mobility, a taxi service owned by the GAC automobile group, is also among those ready to go public.
The strict measures to prevent COVID-19 outbreaks had a negative impact on China’s economy as a whole. As a result, Hong Kong’s budget lost about $27 billion. According to analysts, if China’s policy had been more flexible during the pandemic, Hong Kong’s economy could have grown by about 2.8% in 2019-22, allowing it to outperform 2018 by 7%. However, to prevent the spread of the disease, local authorities closed the borders for almost 3 years, severely affecting industry and business. Only at the end of last year, the Chinese government relaxed measures against COVID-19, which has already had a positive effect on economic growth in China and Hong Kong. Experts hope that in the near future, the stock exchange will also begin the process of recovery after a certain lull.
