Deloitte expects Hong Kong's new stock raising to reach as high as HK$80 billion this year, maintaining its position as the world's fourth largest.

The accounting firm Deloitte released a report stating that with the completion of Midea Group Co., Ltd's listing, it has become the second largest global IPO so far this year, and the Hong Kong Stock Exchange (00388) has risen to fourth place in the global IPO ranking. The Nasdaq, New York Stock Exchange, and India National Stock Exchange are ranked in the top three, with the Shanghai Stock Exchange remaining in fifth place and the Shenzhen Stock Exchange in eighth place. The report predicts that the total IPO fundraising in Hong Kong this year will reach 60 to 80 billion Hong Kong dollars, maintaining its position as the fourth largest globally. The report predicts that in the first three quarters of this year, the Hong Kong market will have 45 new IPOs raising 50.9 billion Hong Kong dollars, with a 2% increase in the number of IPOs compared to the same period in 2023, and a 107% year-on-year increase in fundraising. The market focus in the first three quarters of this year will be on mega-sized IPOs from leading Mainland Chinese home appliance groups, the first two special technology companies, and three GEM IPOs. Deloitte expects that with nearly 100 IPO applications in the pipeline this year, including potential large and mega IPOs, consumer, artificial intelligence, hard technology, life science, green and sustainable companies, as well as the recent completion of the second largest global IPO so far this year, the forecast for the Hong Kong IPO market for the whole year remains at 80 IPOs, with fundraising of 60 to 80 billion Hong Kong dollars, maintaining its position in the top four of global IPO fundraising. Regarding the A-share market, Deloitte pointed out that since April this year, with the implementation of the new "Nine Articles" and related supporting policies, the Mainland capital market has maintained an appropriate pace of IPOs. The implementation of a series of key measures, strong regulatory oversight in the capital market, risk prevention, and promotion of high-quality development have always been the top priorities for regulatory agencies. It is expected that these policies will continue to be implemented in the fourth quarter of 2024, and the pace of IPOs will continue to be maintained. In the first three quarters of this year, it is expected that there will be 70 new IPOs in Mainland China, raising 48 billion yuan. Compared to the same period last year, the number of new IPOs will decrease by 73% to 264, and the total fundraising will decrease by 85%. In the third quarter, the ChiNext may continue to lead in the number of new IPOs in various sectors, while the Shanghai Main Board may raise the most funds again, following the trend from the first half of the year. Deloitte predicts that the number of new IPOs and total fundraising in the A-share market this year will decrease overall, with a total of 95 to 135 new IPOs raising 65 to 96 billion yuan. It is expected that there will be 25 to 35 new IPOs on the Shanghai and Shenzhen Main Boards, raising 25 to 43 billion yuan, and the ChiNext will have 30 to 40 new IPOs raising 18 to 23 billion yuan, while the Shanghai Science and Technology Innovation Board is expected to have 15 to 20 new IPOs.