Hong Kong leads globally in 1Q16 IPO funds raised

Leaving London and Tokyo in the dust.

It has been noted that the amount of funds raised by IPOs in Hong Kong in 2016 Q1 reached HK$27.8 billion, up by 37% YoY.

According to a release from PwC, Hong Kong continued to lead the world in terms of IPO funds raised, leaving London (funds raised amounted to HK$20.6 billion) and Tokyo (funds raised amounted to HK$10.6 billion) a distant second and third.

There were a total of 19 new listings in 2016 Q1, a drop of 32% YoY. Financial services companies dominated the Hong Kong IPO market, with 2 successfully listed Chinese banks raising more than HK$5 billion and HK$10 billion each, reflecting the fact that many Mainland banks and financial institutions have been waiting for the right listing opportunity to broaden their capital.

Here's more from PwC:

Hong Kong’s position as a fundraising platform facing the international market with the backing of the Mainland remained strong.

Although the volatility of the market at the beginning of this year dragged the pricing of the new listings to the conservative bottom end, the Mainland and Hong Kong stock markets stabilised in light of announcements on China’s economic policies.

The launch of two mega-IPOs also boosted total funds raised towards the end of Q1. IPO funds raised in Hong Kong amounted to almost 30% of the funds raised globally.