Hong Kong initial public offerings are expected to raise more than HK$450 billion this year, including 10 US-listed Chinese new listings, according to Deloitte.
Total fundraising in the first quarter increased by 8.4 times to HK$132.8 billion, with 32 new listings. That is mainly thanks to mega deals by Kuaishou Technology (1024), Baidu (9888) and Bilibili (9626), which made up around 70 percent of first-quarter fundraising in Hong Kong.
China is said to be planning a new bourse to attract foreign companies and offshore Chinese companies.
Edward Au, managing partner of southern region at Deloitte China, said China has room to develop its financial market as there is a big gap with other markets in terms of the ratio of the market capitalization of listed firms over GDP.
But Au believes that in the short-term, China will focus more on reforming its listing regime to cater to the financing needs of domestic companies. Concerns such as capital controls need to be addressed, he added.
Still, Hong Kong has initiatives to attract new listings, such as allowing companies with weighted voting rights or pre-revenue firms.
Hong Kong is also considering allowing listings of special purpose acquisition companies. Au said the stock exchange has to tighten regulations to protect retail investors.