Mainland China and Hong Kong IPO markets: 2022 mid-year review

Geopolitical and economic uncertainties continue to taint global IPO market sentiment, resulting in a notable decrease in fund-raising activities during the first half of this year from the same period in 2021. IPO proceeds in the US, Europe and Hong Kong plummeted by over 90% over the first six months of the year. Supported by sizable listings in the first half of 2022, the A-share IPO market outperformed the rest of the world: fund raisings in mainland China accounted for close to half of the global IPO proceeds during the period, according to KPMG China’s Mainland China and Hong Kong IPO markets 2022 mid-year review.

In line with the global market sentiment, Hong Kong’s IPO activities have slowed recording a 92% year-on-year decrease during the first six months of the year in terms of total proceeds raised. So far 24 deals have been completed, bringing in HKD 17.8 billion.

Global geopolitical, economic uncertainties and the ongoing pandemic, however, will continue to sully sentiment for the rest of the year in Hong Kong, the report said. Momentum is expected to pick up gradually as these uncertainties fade out, fuelled by the solid IPO pipeline as more than 170 applicants continue to wait to list on the city’s bourse.

In order to encourage the listing of large-scale specialist technology companies, authorities in Hong Kong are now reviewing the listing rules and considering whether to revise the listing requirements. More details on this matter are expected to be announced during the second half of the year.