Welcome to KPMG China’s Capital Markets Update – 2013 interim review of Hong Kong IPO market. In the December 2012 edition of our Capital Markets Update, we set out our forecast of the IPO market in Hong Kong in 2013. As we are running into the second half of the year, we review in this July 2013 issue how the market performed in the first half of 2013 and set out the outlook for the rest of the year.
Total IPO funds raised in the first half of 2013 reached HKD39.5 billion, an increase of 27.8 percent from the same period last year. While Hong Kong IPO market started the year with solid momentum in the first quarter, factors such as the US Federal Reserve’s planned QE tapering and concerns about the reduced growth prospects of the Mainland economy seem to have cooled down the IPO market toward the end of the second quarter of the year. Looking ahead to the second half of 2013, IPO transactions are expected to continue to grow steadily with Mainland Chinese companies seen as the main growth driver.