Hong Kong’s IPOs are declining while investors prefer competitive markets

The list of new products in Hong Kong has dropped this year, which has made this a bit different in the global markets as concerns continue over the rise of Chinese technology companies after Beijing cut its brakes on offshore sales.

Hong Kong-based government grants rose to less than $ 26bn this year, down 10 percent from the previous 12 months and more than one-fifth of 2020, according to a Dealogic survey. In comparison, fundraising for IPOs worldwide he jumped 75 percent from last year’s risk, while contracts in New York alone rose to about $ 300bn.

Banks were expects Hong Kong to benefit from China banning the control of technical companies, which began shortly before joining Didi Chuxing’s group in the US in June and is initially expected to head to New York.

But ambiguity from Beijing over plans to form a new government on the maritime ports has hampered efforts to divert floating from Wall Street to the Asian economic center.

Good Friday he announced will withdraw from the New York Stock Exchange after Beijing investigated the company over data protection. Although Didi said he wanted to advertise in Hong Kong instead, the investigation and its Wall Street abruptly withdrew a few months after his IPO increased uncertainty.

The decline in Hong Kong’s list of post-historic figures shows that the market size depends on the number of IPOs from Chinese technical groups, which polluted with anxiety about how and when startups can get a license to sell shares overseas.

“This year has been marked by unpredictability and systemic global market turmoil,” said Jason Elder, a partner at the Mayer Brown law firm in Hong Kong, adding that investors and investors are waiting for Chinese authorities to explain in detail how to do so. and the legitimate IPO rules of the sea will work.

Hong Kong has long marketed itself as the capital of China’s top foreign investment companies, and has stepped up its efforts as the IPOs in New York stand firm and as China focused on expanding its major markets.

Eddie Yue, head of the Hong Kong Monetary Authority, said the number of exporters using Hong Kong-based markets for large markets, on the contrary, was growing. “We are part of China and we are an important part of the global economy,” he told the Global Banking Summit of the Financial Times this week.

More than half of China’s Goldman Sachs pipeline companies following IPOs in New York are planning to relocate to Hong Kong, according to a bank official.

But hopes of a continuation of the movement were confirmed Thursday as divisions in Cloud Village, a music platform managed by the technical team NetEase, dropped by 2.5 percent on the first day of trading. The IPO was scheduled for August but it was delayed as technical losses intensified, with the deal targeting from $ 1bn to $ 500bn.

Despite only raising $ 422m, Cloud Village was Hong Kong’s largest IPO in months. It was considered a bellwether on the Chinese technical list in Hong Kong.

“The cost of sharing is always a good speaker,” says Dickie Wong, chief research officer at Kingston Securities. He added that partners including parents NetEase, Sony Music and Orbis promised to buy $ 350m in shares, which meant that the deal could only raise $ 72m from exporters. “Whether they were investors in the country or in another country, they were not interested in the company.”

The division of Hong Kong offers more it’s all right in the weeks and months after hitting the market. Dealogic Dealogic showed that 80 percent of the city’s 73 IPOs this year are doing business under their own price, down 15 percent from the list.

The suspension of almost all maritime IPOs by Chinese companies with user information, issued by Beijing in July due to national security concerns, also disrupted Chinese IPOs in the US.

But all of New York’s revenue stream has reached this year due to the high number of exits from companies for specific purposes.

In comparison, Hong Kong Exchanges and Clearing had just completed a discussion on the idea of ​​approving Spac lists and did not announce its decisions, although previous guidelines pointed to a more restrictive government than their counterparts.

Traders and traders also warned that Hong Kong is facing stiff competition from Shanghai and Shenzhen, where revenues this year are already 8 percent higher than last year, at $ 61.5bn.

“HKEX is not stable,” Wong told Kingston Securities. “It’s the only Chinese exchange.”