Hong Kong’s new listings volume plunged 90% to a nine-year low this year, data showed, as China’s sharp economic slowdown and its regulatory drive cast a long shadow over the city’s prospects as a destination for initial public offerings (IPOs), reports Reuters.
The drying up of share listings in Hong Kong bodes ill for investment banks, who make about a third of their revenue in the region from equity capital market deals, and for the Chinese-ruled territory’s status as a global financial hub.
Only $2.1 billion has been raised this year via IPOs and secondary listings in Asia’s most popular fundraising venue compared to $20.7 billion by the same time last year, according to Refinitiv data, the slowest start to a year since 2013.
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