Mainland China and Hong Kong IPO markets 2021 mid-year review

Supported by strong liquidity, homecoming listings and sizeable deals, Hong Kong’s IPO market was buoyed by solid investor demand and market sentiment, and reached a historic high in terms of total proceeds for the first half of 2021. Total funds raised reached USD26.0 billion, according to KPMG’s latest analysis. The Hong Kong Exchange currently ranks third among the top 5 stock exchanges, and the Shanghai Stock Exchange follows with USD20.6 billion in IPO proceeds.

KPMG’s 2021 mid-year review of Mainland China and Hong Kong IPO markets shows that, globally, both total funds raised and the number of listings increased by 196% and 134% in first half of 2021 compared with the same period last year. The US, Hong Kong and China’s A-share markets remained in the leading positions, raising a combined total of USD130.7 billion. Technology, media and telecoms (TMT); Healthcare / Lifesciences; and Consumer Markets were the top sectors, contributing over 70% of total funds raised in the US, HK and the A-share IPO markets.

It was recently announced that profit requirements will be lifted for the first time in nearly three decades, as the Exchange continues to focus on upholding market quality, protecting investor interests and maintaining the Hong Kong bourse’s competitiveness. The recent announcement may lead to an acceleration of IPO applications in the second half of this year, however the Hong Kong IPO market will not be significantly impacted in terms of funds raised.