Hong Kong’s share of regional initial public offerings has shrunk to the lowest in more than two decades despite a recent pick up in deals, costing the financial hub its position as one of Asia’s biggest listing venues, reports Bloomberg.
Just $7.75 billion has been raised through first-time share sales in the city this year, representing 7% of the Asia-wide total, according to data compiled by Bloomberg. That’s the lowest share for Hong Kong since 1999, when it was just 6%, the data show.
Hong Kong’s IPO market has been in the doldrums for much of the year, with proceeds down 78% from this time last year as global concerns over inflation and rising interest rates caused share sales to grind to a halt in most regions. In addition, Beijing’s relentless pursuit of its COVID-Zero strategy and a property market slump have weighed on Hong Kong’s stock market as fears grow about the drag on the world’s second-largest economy.