Deloitte China's credentials on IPO services 2016 Review and 2017 Outlook of Hong Kong and Chinese Mainland IPO Markets

Deloitte China's credentials on IPO services

They contain infographics of Deloitte China's IPO leadership and major IPOs that it supported in 2016.

2016 Review and 2017 Outlook of Hong Kong and Chinese Mainland IPO Markets

Following an eventful year in both the macroeconomic and political situations across the globe, professional services organization Deloitte China's National Public Offering Group anticipates stock exchanges in Hong Kong and Shanghai to come first and second respectively ahead of New York in terms of the total initial public offering (IPO) funds raised at the end of 2016.

Despite many worrying developments in particular the weakening Chinese economy earlier in the year, lingered uncertainty over the U.S. interest rate hike timetable and Brexit, Hong Kong can still support many large offerings boosted by optimistic news such as the European Central Bank's quantitative easing measure, improved Chinese economic performance over the course of the year and the anticipated Shenzhen-Hong Kong Stock Connect.

Since the second half of the year, more IPOs on the Mainland were given the green light to offer in the market as the Chinese economy recorded a better performance. Similar to its Hong Kong peers, in 2016, the A-share market is to have a significant share of the total funds raised in the market driven by Chinese financial services institutions.

In 2017, the global IPO market is to face uphill challenges amid numerous factors particularly of the normalization of the U.S. monetary policy, leadership changes in several key countries, ongoing depreciation pressure on the Renminbi as well as Brexit’s further developments. Despite a solid pipeline, Hong Kong's IPO fundraising capability especially for mega IPOs may come under pressure. It is likely to result in a slow start to Hong Kong's IPO market in the first half of the year.

The A-share IPO activities, on the contrary, are expected to accelerate to enable the long queue of pipeline to gain access to the capital market as long as the market environment is supportive. The pace of IPO approvals since the second half of 2016 also indicates that more IPOs will be accelerated to the market in 2017.