Interest rate hikes and higher than expected inflation continue to plague global IPO activities, as the number of global IPO proceeds and number of deals would record a period-on-period decrease of over 65% and 20% respectively, according to KPMG China’s latest report Chinese Mainland and Hong Kong IPO Markets 2023 Q1 Review.

The US stock exchanges remain in a slump and raised less than USD 3 billion in the first quarter of 2023, which will be the lowest level for the first quarter since 2017. The stock exchanges in the Chinese Mainland and Hong Kong also recorded large declines in IPO proceeds, although they remain ranked among the top five global stock exchanges.

In recent years, Hong Kong has made significant strides in attracting the listings of emerging and innovative companies, with the most recent development being the implementation of the Specialist Technology Companies regime, which will become effective on 31 March 2023. The regime will provide an alternative route for high-growth enterprises with specialist technologies to list in Hong Kong, granting them access to the city’s deep pool of capital, and continuing to bolster Hong Kong’s competitiveness and attractiveness among global stock exchanges.