Skip to main content

      29 March 2023, Hong Kong – 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 USD3 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.

      Paul Lau Paul Lau, Partner, Head of Capital Markets and Professional Practice, KPMG China, says:
      open quote

      Global IPO market sentiment was weak in the first quarter of 2023, with ongoing economic uncertainties further worsened by the recent financial market instability. The global IPO market will remain challenged in the short term with interest rates predicted to increase further before the Federal Reserve ends its inflation battle.

      close quote

      A-share markets raised RMB78.3 billion in IPO proceeds in the first quarter, representing a reduction of 55% as compared to 2022 Q1, largely due to the lack of sizeable IPO deals completed during the quarter and the lingering effects of the pandemic. On the other hand, the A-share IPO pipeline remains strong with over 810 active applicants, as interest in the STAR & ChiNext markets remain high.

      Emboldened by the success of the registration-based system first piloted on the STAR market, the China Securities Regulatory Commission announced the expansion of the registration-based system across all A-share IPO markets on 17 February 2023. The unification of listing procedures across all boards should help improve the facilitation of the multi-level capital market and continue to elevate the A-share market’s openness and vitality.

      Louis Lau Louis Lau, Partner, Capital Markets, KPMG China, says:
      open quote

      The A-share markets have demonstrated a commitment to improving their system and are well-positioned to take advantage of the government’s economic stimulus to revive its IPO activities. We remain cautiously optimistic for the A-share IPO markets for the rest of the year.

      close quote

      Consistent with global trends, IPO proceeds in Hong Kong diminished by 50% as compared to 2022 Q1 due to the lack of sizeable IPO deals, but were able to record a slight increase in the number of IPO deals completed, once again demonstrating the city’s resilience in challenging times. Hong Kong continues to have a healthy IPO pipeline, with over 90 active applicants at the end of the quarter.

      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.

      Irene Chu Irene Chu, Partner & Head of New Economy and Life Sciences, Hong Kong (SAR), KPMG China, says:
      open quote

      Just as the launch of Chapter 18A led to a new biotech financing ecosystem in Hong Kong, we are confident that the new Specialist Technology Companies regime will help drive growth in talent and investments for specialist technologies in Hong Kong and beyond. In the long run, the development of a specialist technology financing ecosystem will diversify Hong Kong’s capital markets and create a more appealing environment for both issuers and investors.

      close quote

      -Ends-

      KPMG’s analysis and review of the Chinese Mainland and Hong Kong IPO markets in 2023 Q1

      Read more

      Media inquiries

      Dyna Yu
      +852 3927 5798
      dyna.yu@kpmg.com

      Isis Wong
      +852 3927 5810
      iw.wong@kpmg.com

      Isaac Yau / Jimmy Chan
      Citigate Dewe Rogerson
      +852 3103 0112 / +852 3103 0102
      KPMG@citigatedewerogerson.com

      Find out how KPMG's expertise can help you and your company.

      Click to begin
      Connect with us

      About KPMG

      KPMG in China has offices located in 31 cities with over 14, 000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the “Big Four” in the Chinese Mainland to convert from a joint venture to a special general partnership.

      KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ("KPMG International") operate and provide professional services. "KPMG" is used to refer to individual member firms within the KPMG organisation or to one or more member firms collectively.

      KPMG firms operate in 138 countries and territories with more than 276, 000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.