Hong Kong’s moribund IPO market seen revived by deals from innovative, ‘unbelievably huge’ China companies: Citi

Hong Kong’s limping initial public offerings (IPO) market, dealt a crippling blow by rising interest rates and an aversion to Chinese assets, appears to be healing. Investors are tiptoeing back, drawn by a generation of innovative, little-known companies that will also provide a rich vein of investment banking business for years to come, Citigroup’s head of Asian investment banking said.

The city made a sluggish start this year, with 12 IPOs generating HK$4.7 billion (US$601 million) in proceeds in the first quarter, or a 29 per cent drop from a year earlier. Stock exchanges in mainland China managed 30 new listings in the first quarter, which generated 23.6 billion yuan (US$3.3 billion) of proceeds, or a 64 per cent slide from a year earlier.

Source: Trade Finance