Ernst & Young: Hong Kong IPOs rank 2nd globally
- By Guo Xiaohong
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E-mail China.org.cn, December 17, 2013
The total amount raised by the Hong Kong Stock Exchange in IPOs is expected to hit HK$162 billion in 2013, an 80 percent increase on 2012, the 2nd largest globally, according the annual world IPO report released by Ernst and Young yesterday.
The total amount raised by the Hong Kong Stock Exchange in IPOs is expected to hit HK$162 billion in 2013, a 80 percent increase on 2012, the 2nd largest globally, said Hoffman Cheong, Ernst & Young (EY)’s Assurance Leader for China North, at the release of EY’s annual world IPO report in Beijing yesterday.
Hoffman Cheong, Ernst & Young (EY)’s Assurance Leader for China North, at the release of EY’s annual world IPO report in Beijing on December 16, 2013. [photo by Guo Xiaohong/China.org.cn]
Due to the freeze in IPO activity in China’s mainland, with listings suspended since late 2012, Hong Kong saw an increase in the number of deals and total funds raised, said Cheong. The number of Hong Kong IPOs increased by 60 percent to 96, from 60 in the previous year.
Nine of the top 10 IPO enterprises on the Hong Kong Stock Exchange in 2013 are from the Chinese mainland, including Everbright Bank, Cinda Asset Management Co. Ltd., Sinopec Engineering Group, Huishan Dairy Holding Co., Huishang Bank, China Galaxy Securities, China Conch Venture Holdings Ltd., and Langham Hospitality Group. Together they accounted for 64 percent of Hong Kong’s total IPOs in 2013.
According to the EY report, 2013 also marks the end of a two-year decline in global IPO activity since 2010, with 182 PE-backed deals raising US$56.4 billion, accounting for 35 percent of global proceeds. The real estate industry raked in the most funds - US$25.6 billion, followed by the finance and energy industries.
Terrence Ho, EY’s Greater China strategic growth markets leader, attributed this to easing global monetary conditions, rising investor confidence and the improving macroeconomic backdrop.
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Terrence Ho, EY’s Greater China strategic growth markets leader at the release of EY’s annual world IPO report in Beijing on December 16, 2013. [photo by Guo Xiaohong/China.org.cn] |
2014 will also be record year for Greater China IPOs, based on strong HK momentum and the mainland’s A share resumption.
Ho also believed that China’s Third Plenary Session of the 18th CPC Central Committee held in November will also increase investor confidence in the Chinese economy, which will also boost stock market listings.
Ernst & Young is one of the largest professional service firms in the world and one of the "Big Four" accounting firms, along with Deloitte, KPMG and PricewaterhouseCoopers (PwC).
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