In this March 9, 2020 file photo, electronic boards display various stock prices at Exchange Square in Hong Kong. (ISAAC LAWRENCE / AFP)
Despite global economic uncertainties stemming from the COVID-19 pandemic, the Hong Kong Stock Exchange ranked second among global IPO markets in total IPO fundraising in 2020, accounting and consulting firm PricewaterhouseCoopers said.
PwC also said the Hong Kong Special Administrative Region market is expected to have a record year in terms of total IPO fundraising and to regain the top position among the global IPO fundraising markets in 2021.
With total funds raised from 154 listings last year at HK$397.7 billion (US$51.3 billion), a 25 percent increase over 2019, Hong Kong has ranked in the top three global IPO markets for more than a decade
With total funds raised from 154 listings last year at HK$397.7 billion (US$51.3 billion), a 25 percent increase over 2019, the HKSAR has ranked in the top three global IPO markets for more than a decade. HKEX was boosted last year by new-economy enterprise listings and US-listed Chinese mainland enterprises’ second listings.
The Nasdaq Stock Market topped the list of total IPO funds raised in 2020, and the Shanghai Stock Exchange came in third, PwC said.
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Funds raised on the Growth Enterprise Market board decreased by 40 percent from last year at HK$600 million. Biotech company listings increased in Hong Kong in 2020 compared to 2019, and the trend is expected to continue in 2021, PwC added.
PwC also said it expects that the new-economy and US-listed mainland enterprises will remain the major drivers for listing activities on HKEX in 2021. With strong funds and funding needs, total fundraising in 2021 is expected to be between HK$420 billion and HK$460 billion.
PwC said the biotech-company listing boom is expected to continue into 2021, continuing to position the HKSAR as the best listing platform for biotech companies in Asia.
With mainland markets, the A-share market set a record for total funds raised and number of listings with a total of 471.9 billion yuan (US$73.0 billion) raised from 395 IPOs on the mainland’s four main boards. The Science and Technology Innovation Board raised 222.6 billion yuan for 145 companies in 2020. PwC expects stabilized growth in the markets with 430 to 490 new listings and 450 billion to 480 billion yuan of total funds in 2021.
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“The proposed expanded Stock Connect scheme will allow Hong Kong to offer more unique value and business opportunities for enterprises and investors, playing an active and important role in establishing China’s multi-level capital market,” said Benson Wong, PwC Hong Kong entrepreneur group leader.
HKEX announced in November the Stock Connect expansion program with SSE and SZSE.
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