After a month and a half of silence, the Hong Kong market is welcoming new listings again. Has the enthusiasm for IPOs in Hong Kong stocks returned?
Jiemian.com
By u Chenguang LCG
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Drew Bernstein, co-founder and co-chairman of Marcum Asia, commented that the slow pace of 2023 listings on the Hong Kong Stock Exchange can be partly attributed to a new government review and approval process. Since March, all Chinese overseas listings have been subject to these requirements. A clear IPO approval process is a healthy development and should contribute to increased market confidence.
“In the long term, it is clear that Hong Kong’s IPO market will continue to provide a vital alternative to mainland companies that seek exposure to global investors with the convenience of a near-shore listing venue.” Bernstein said.
Hong Kong has traditionally served as a “window into China” for overseas investors, with a heavy representation of companies in sectors such as consumer goods and real estate. Many global investors continue to consider attractive valuations and whether consumer sentiment will turn more positive.