The value of new initial public offerings (IPOs) in Hong Kong have dropped this year, making it a unique case across the globe as worries continue over the prospects for China’s tech sector after Beijing severely curbed offshore share sales, reports the Financial Times. IPOs in Hong Kong have raised less than $26 billion this year, down 10% compared with 12 months ago and more than a fifth lower than 2020’s total, according to data from Dealogic. By comparison, global IPO fundraising has jumped 75% from last year’s total, with deals in New York alone rising to about $300 billion.
Bankers had expected Hong Kong to benefit from China’s regulatory clampdown on technology companies, which began immediately after ride-hailing group Didi Chuxing’s US listing in June and was initially expected to focus on New York.
But a lack of clarity from Beijing on plans for a new approvals regime for offshore listings has hampered efforts to divert flotations from Wall Street to the Asian financial hub.