The lack of initial public offerings due to China’s corporate crackdowns and covid-related issues has placed Hong Kong Exchanges & Clearing Ltd among the worst-performing listed bourses globally this year, reports Caixin. The exchange’s shares have retreated about 28% in 2022, just behind those of Moscow’s bourse and cryptocurrency platform Coinbase Global Inc. The HKEX is due to report earnings Wednesday, with first-quarter net income expected to slump 23%, according to an average of six estimates compiled by Bloomberg.
Hong Kong hasn’t hosted any IPO larger than $1 billion so far this year. Overall proceeds in the Asian financial hub have slumped, with the vast majority of newcomers plunging below the listing price after they debuted. Losses in Chinese stocks have deepened this year as strict lockdowns add to persistent worries over regulation and rising global interest rates.
The bourse’s earnings “may be pressured by weak stock market sentiment, pandemic restrictions in the city and fewer IPOs by Chinese unicorns facing cybersecurity reviews or tighter overseas listing rules,” said Sharnie Wong, an analyst at Bloomberg Intelligence.