Hong Kong stock market will rebound with more IPOs ‘in pipeline’ in second half of year: Paul Chan

Hong Kong’s stock market will be more vibrant in the coming months as more substantial initial public offerings (IPOs) are set to be listed in the city, the finance chief has revealed, as he sought to spell out a clearer economic plan for the coming year amid a gloomy outlook.

In an interview with the Post, Financial Secretary Paul Chan Mo-po also said he would visit Australia in September to promote opportunities in the city, and revealed the government’s investment arm was screening more than 100 companies keen to set up shop in Hong Kong.

Chan’s prediction of a stronger IPO performance in the second half of this year came as mainland Chinese fast fashion giant Shein opted to list in London, raising questions about whether Hong Kong’s financial market had lost some of its shine.

“I won’t comment on specific cases, but we are very confident that strong support from the central authority has been communicated to mainland enterprises,” he said, referring to measures to connect businesses across the border with Hong Kong’s equity market.

“At the moment, in the pipeline, IPOs coming to Hong Kong are very strong. And we do think that in the second half of this year, particularly from the third quarter, you will be able to witness more substantial IPOs coming here for listing.”

IPOs in Hong Kong raised HK$11.6 billion across 27 deals in the first half of 2024. This was a decline of 35 per cent in funds and 15 per cent in the number of deals, compared with the first half of 2023.