The rush of filings comes as the Hong Kong bourse has been taking steps to relax IPO requirements for mainland-listed companies to sell shares in the city. China’s securities regulator has also been encouraging the nation’s firms to list in Hong Kong, unveiling a package of measures to bolster the city’s position as an international financial hub.
Investors say the timing of the surge isn’t unusual given financial statements are only valid for six months, meaning listing announcements tend to peak in June and December. There’s an extra incentive this year too, as many firms may want to complete their listings before Donald Trump is inaugurated on Jan 20.
“From an investor’s viewpoint, I would say it’s a wise decision to get IPO before Trump administration because who knows what he is going to say with his tariff implementation or policy,” said Ronald Chan, chief investment officer at Chartwell Capital in Hong Kong. “That could shake up the economy for China and could create unnecessary volatility and that could also be valuation-destructive.”
Hong Kong’s IPO proceeds have nearly doubled in 2024, but that’s still below the annual average of about US$30 billion ($40.8 billion) for the 10 years preceding the Covid-19 pandemic, according to data compiled by Bloomberg.
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The benchmark Hang Seng Index has gained more than 18% this year, helped by a blitz of stimulus measures announced by China from September.
