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

According to the latest analysis of new listing markets of the Chinese Mainland and Hong Kong (HK) recently released by professional services organization Deloitte China, the Mainland regulator's support for initial public offering (IPO) activities will enable stock exchanges in Shanghai and then Shenzhen to remain ahead of the HK Stock Exchange while lagging behind the New York Stock Exchange in terms of IPO funds raised as at the end of the first six months in 2017. The New York Stock Exchange maintained the crown position with three huge offerings including Snap Inc. and an improved market sentiment following the new U.S. administration that commenced office at the beginning of the year.

Large offerings in HK market were slowed by the U.S. interest rate hikes, elections in Europe and uncertainties in the Eurozone especially related to the Brexit negotiation in the first six months. But HK's long application list suggests a resilient IPO market for the remainder of the year. In addition, the last quarter is the traditional peak season for its new listings. The city is likely to continue to trail New York due to both fewer huge offerings and the smaller scale of IPOs in the pipeline.

As for the A-share market, the IPO activities on the Chinese Mainland were considerably boosted by regulatory support. This is also going to be of one of the best performances in this market since the same period of 2011. Deloitte expects it will take 12 to 14 months at the least for approximately 550 applicants to get listed. The MSCI's inclusion of A shares in next June will eventually reduce the valuation gap between A shares and H shares in the longer term.

For more information, please read the complete press release and download the report that was last updated on 30 June 2017(in Simplified Chinese).