UBS: It is expected that Hong Kong IPO issuances will exceed HK$200 billion this year, with the revised minimum 40% allocation.

UBS Deputy Head of Global Investment Banking and Co-Head of Asian Corporate Clients, Li Zhengguo, predicts that the Hong Kong IPO issuance volume this year could exceed HK$200 billion. On August 1, the Hong Kong Stock Exchange issued a consultation summary on optimizing the pricing and disclosure requirements for initial public offerings. In response, Li Zhengguo pointed out that the strengthened IPO pricing mechanism and disclosure requirements announced by the Hong Kong Stock Exchange will undoubtedly continue to enhance Hong Kong's attractiveness and competitiveness as one of the primary listing venues for issuers. These revisions will further strengthen the choice of Hong Kong as the preferred listing location for global companies. Furthermore, the new minimum 40% allocation requirement ensures that the listing pricing mechanism and participation in the IPO by a wide range of institutional investors will result in stable long-term post-listing performance. The optimization of new stock market pricing and disclosure rules by the Hong Kong Stock Exchange will take effect on August 4.