Chinese Mainland and Hong Kong IPO markets 2023 Q3 review

In the third quarter of 2023, global IPO activities remained sluggish due to macroeconomic and geopolitical uncertainties. Hong Kong’s global IPO ranking dropped to eighth following a historically slow third quarter. The Hong Kong IPO market performance is anticipated to face ongoing challenges in the near future due to the persistently high interest rate environment and slowing economic growth. In spite of this, the steady pipeline of around 110 active IPO applicants bring expectations for Hong Kong to reclaim a top five global IPO ranking by the end of 2023, according to KPMG‘s Chinese Mainland and Hong Kong IPO Markets 2023 Q3 Review.

The Hong Kong Stock Exchange (“HKEX”) recently published a consultation paper on the GEM reform, proposing measures to enhance the appeal of GEM for small and medium-sized enterprises with high-growth potential. Furthermore, the government has established a task force to enhance the liquidity of the stock market and bolster the development of Hong Kong's capital market. The dynamic initiatives, coupled with HKEX’s continuous improvement of its listing regime, are crucial to strengthening Hong Kong’s diverse and multi-layered capital markets, a key to maintaining the competitiveness of Hong Kong as a premier international financial centre.