EY: Hong Kong IPOs rank 1st globally
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E-mail By Guo Xiaohong, December 30, 2015
IPO activity in the Hong Kong market in 2015 has been impressive, setting a new record by number of deals and funds raised at a five-year high, according to the newly released annual world IPO report by EY, a global leader in assurance, tax, transaction and advisory services.
There were a total of 121 IPOs in Hong Kong raising HK$261.4 billion, up 11% and 12%, respectively, from 2014, making it the world’s largest IPO market in terms of funds raised.
"The exceptional performance of the Hong Kong market in 2015 was underpinned by large enterprises from Chinese mainland," said Hoffman Cheong, EY's China North Assurance Leader on December 28.
He revealed that non-commercial bank financial institutions accounted for over 60% of total funds raised by the top 10 IPOs in Hong Kong. Following the last wave of large commercial banks, issuers from the financial sector this time were from a diverse sub-sector including securities trading, insurance and asset management.
According to the report, China led the global market for initial public offerings (IPOs) with 372 IPOs raising US$60.3 billion.
China's mainland A-share market saw a total of 219 IPOs, raising 158.6 billion yuan, an increase of 75% and 102%, respectively, from 2014.
The IPO market in Taiwan was also impressive in 2015, with funds raised up 44% year-on-year and an increase in number of deals by 17%. Issuers from the biomedical and technology sectors dominate the new listings.
By sector, industrials and TMT (technology, media and telecom) ranked first and second by number of deals, representing 34% and 20%, respectively, of total IPOs, echoing the Chinese government’s top priorities of "Internet Plus" and "Made in China 2025".
Despite a rollercoaster ride in 2015, Chinese mainland A-share market is expected to have a rewarding year ahead following the rolling out of a number of favourable policies, predicted Vivien Zhang, EY Assurance Partner.
In the first half of 2015, Shenzhen Stock Exchange topped the world by number of IPOs and Shanghai Stock Exchange ranked second globally by funds raised, said the report.
In early July, as a result of the stock-market crash on the Chinese mainland, China has taken a number of market stabilizing measures which included the suspension of IPOs. IPO resumed when the stock market stabilized in November.
"As IPO resumes, the A-share market is now back on track for its reform. The capital market may now continue to play its role in funding and driving the growth of emerging companies," said Vivien Zhang. "The regulators would further optimize the system for new shares issue and ensure a smooth transition to a registration-based regime, step by step."
In 2016, a series of policies will beef up the IPO market in China’s mainland, including the rolling out of the registration-based regime, the optimization of the multilayer capital markets system and the further untightened capital market rules, said Hoffman Cheong, EY's China North Assurance Leader.
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