Alibaba’s HKEX debut may inspire US-listed Mainland firms to list in the city.
Hong Kong is projected to record 160 new listings in 2020 as the city brings more US-listed Mainland tech firms to the stock exchange, according to a report by Deloitte. They are expected to raise $220-250b in IPO funds.
Inspired by the mega secondary listing of a Chinese tech giant in November, more well-known, US-listed Chinese technology and internet companies, or those that previously planned to list in the US, are expected to be attracted to Hong Kong in 2020.
Alibaba Group officially listed on the main board of the Hong Kong Exchanges and Clearing Limited (HKEX) on 26 November.
"Hong Kong's milestone listings are not only among the five biggest IPOs worldwide in 2019, they are also likely to inspire more US-listed Chinese new economy and overseas companies to list in Hong Kong in 2020," says Edward Au, co-leader of the National Public Offering Group.
Reforms including the offering mechanism, proposals for a limited partnership regime for private equity funds, and expansion of the H-share full circulation program may also help the market gain favour amongst issuers.
Hong Kong's stock exchange is set to retain the global IPO fundraising crown as it is projected to record at least 161 new listings that would raise about $311.8b by 31 December. Although new listings are expected to fall 23%, the total IPO funds raised is tipped to rise 9%.
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