US and India IPO Sizes Rank Among Global Leaders
Hong Kong, known as an 'international financial hub,' recorded the lowest amount of funds raised through initial public offerings (IPOs) in the first half of the year in 20 years. This decline is attributed to the slowdown of the Chinese economy and geopolitical tensions arising from the US-China conflict.
According to the South China Morning Post (SCMP) on the 28th, the Hong Kong Stock Exchange ranked 13th in the global stock market IPO rankings for the first half of the year, announced by the London Stock Exchange Group (LSEG), dropping four places compared to the same period last year. A total of 27 companies raised $1.5 billion (2.0685 trillion KRW) through IPOs on the Hong Kong stock market in the first half. This represents a 35% decrease from the same period last year and is the lowest amount since the first half of 2003, when SARS (Severe Acute Respiratory Syndrome) struck, raising $820 million (1.1 trillion KRW).
The mainland Chinese stock markets, which were the leaders in the global IPO market last year, also saw a sharp decline in rankings. The Shanghai Stock Exchange attracted $1.3 billion (1.8 trillion KRW) from 9 IPOs, ranking 15th. The Shanghai Science and Technology Innovation Board (STAR Market, 科創板), which ranked first in the same survey last year, only raised $710 million (967 billion KRW) from 6 IPOs this year, falling to 20th place. The Shenzhen ChiNext also dropped from 2nd to 16th place, and the Shenzhen Stock Exchange fell to 26th place with only 3 IPOs.
SCMP explained that the funds raised in the Hong Kong stock market in the second quarter were about 40% higher than those in the first quarter, indicating an improving situation. Global accounting firm Ernst & Young (EY) predicted that IPO activity in the mainland Chinese market would remain sluggish in the short term but expected a significant increase in Hong Kong IPOs in the third quarter, thanks to support policies from the Chinese government. Chinese authorities introduced a series of stock market stimulus measures in the first half of this year to overcome the sluggish domestic stock market.
In contrast, the US and Indian stock markets soared. The New York Stock Exchange (NYSE) ranked first in the global stock market IPO rankings for the first half, attracting $10.9 billion (15 trillion KRW) from 21 IPOs. Nasdaq followed in second place with $7 billion (9.65 trillion KRW) from 50 IPOs. The Indian Stock Exchange and the Mumbai Stock Exchange ranked third and fourth, raising $4.3 billion (102 IPOs) and $3.47 billion (70 IPOs), respectively.
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