Update on HK Capital Market Landscape - National Public Offering Group Edward Au, 10 January 2020 (Hong Kong) - Deloitte
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Update on HK Capital Market Landscape National Public Offering Group Edward Au, 10 January 2020 (Hong Kong)
Edward Au
Co-Leader, National Public Offering Group
Partner, Audit & Assurance
Phone: +852 2852 1266/ +852 9866 9539
Email: edwau@deloitte.com.hk
Address: 35/F., One Pacific Plce, 88 Queensway, Admiralty
Edward Au has been Audit partner of Deloitte China since 2003 and has
extensive experience in auditing multinational corporations, public companies
and enterprises in Hong Kong, Singapore, the U.S., and the Chinese Mainland.
He focuses on the U.S. Generally Accepted Accounting Principles and
International Financial Reporting Standards, and the reporting matters related
to the U.S. Securities and Exchange Commission and Hong Kong Stock
Exchange.
He is also co-leader of National Public Offering Group of the China Firm and has
been actively involved in various debt and equity offering activities in Hong
Kong, the U.S., and Singapore. He is one of the firm’s spokespersons on issues
related to initial public offering.
Professional Qualification
• Certified public accountant in HK and the State of Washington, the U.S.
• Certified Practising Accountant of CPA Australia
• Fellow member of the Hong Kong Institute of Certified Public Accountants
(HKICPA)
• Fellow member of the Association of Chartered Certified Accountants (ACCA)
• Member of the American Institute of Certified Public Accountants (AICPA)
• Chartered Global Management Accountant (CGMA)
Public Appointments
• Council member of the HKICPA
• Deputy chairman of the HKICPA’s Corporate Finance Advisory Panel
• Audit committee of the HKICPA
• Audit committee of the Hong Kong Red Cross
• Member of the Investment Task Force of the Construction Industry Council
© 2020. For information, contact Deloitte China. 2
Highlights
• HK’s competitiveness as an
international capital market
• Regulatory scrutiny over
listing applications
• Benefits of listing regime
reform
• Prospective landscape on the
HK capital market
© 2020. For information, contact Deloitte China. 3
2019 IPO Market Review ─ Global © 2020. For information, contact Deloitte China. 4
Alibaba and Budweiser helped HK retain its crown jewel position in IPO
fundraising. More large deals pushed Nasdaq into 2nd place. Saudi Stock
Exchange jumped to 3rd due to Saudi Aramco’s IPO, the largest in
history. Postal Saving Bank of China’s IPO and the effect of new STAR
Market boosted Shanghai Stock Exchange to 4th.
IPO proceeds raised by the top five stock exchanges in 2019
HK Stock Nasdaq Saudi Stock Shanghai Stock New York
Exchange Exchange Tadawul Exchange Stock Exchange
164 new listings raising 141 new listings raising 5 new listings raising 123 new listings raising 39 new listings raising
HKD315.5 billion HKD215.7 billion HKD207.8 billion HKD207.2 billion HKD182.3 billion
Source: Hong Kong Stock Exchange (HKEX), Saudi Stock Exchange Tadawul, New York Stock Exchange, Nasdaq, China Securities Regulatory Commission, Bloomberg
and Deloitte’s analysis as at 31 December 2019; excludes proceeds from the exercise of over-allotment options by December 2019 new issuers not completed by 31
December 2019.
Includes funds raised from listings of real estate investment trusts, but excludes proceeds raised from investment trust companies, closed-ended investment
companies, closed-ended funds and special purpose acquisition companies (SPACs).
© 2020. For information, contact Deloitte China. 5
Saudi Aramco, the largest IPO in history, and Alibaba, HK’s
largest IPO in 2019, sent proceeds of the 5 largest global IPOs up
by nearly 30%. HK had two IPOs in the Top 5.
2019 2018
450
32
Shanghai 350
45
360
Stock 33
Exchange HKEX 300
64 HKEX 39
NYSE Saudi 250 Deutsche 43
270 Borse Tokyo
Stock
101 Exchange HKEX Stock
200 59
441 Tadawul Exchange
180
HKEX 339
150 HKEX
100
90 200 165
50
0 0
(HKD billion) (HKD billion)
Source: HKEX, Saudi Stock Exchange Tadawul, New York Stock Exchange, China Securities Regulatory Commission, Deutsche Borse, Tokyo Stock Exchange,
Bloomberg and Deloitte’s analysis as at 31 December 2019; excludes proceeds from the exercise of over-allotment options by December 2019 and December 2018
new issuers not completed by 31 December 2019 and 31 December 2018 respectively.
Includes funds raised from listings of real estate investment trusts, but excludes proceeds raised from investment trust companies, closed-ended investment
companies, closed-ended funds and SPACs.
© 2020. For information, contact Deloitte China. 6
2019 IPO Market Review ─ Hong Kong © 2020. For information, contact Deloitte China. 7
HK retained its IPO fundraising crown in 2019
IPO fundraising hit another post-2010 record high
1st tech IPO with a WVR structure completed
W secondary offering
More new economy IPOs
More pre-revenue biotech IPOs raised a higher proportion of
funds; 1st IPO of a pre-revenue medical device company
Offering scale from overseas companies
in HK grew
Source: HKEX, Deloitte’s analysis as at 31 December 2019; excludes proceeds from the exercise of over-allotment options by December 2019 MB issuers which did
not complete by 31 December 2019
© 2020. For information, contact Deloitte China. 8
The HK IPO market posted stellar results in 2019 after the
debuts of several mega IPOs; IPO funds raised reached another
post-2010 peak
Proceeds
2018
+10%
No. of new 208
listings new listings
2019 raising
-21% HKD286.6
billion
164
new listings
raising
HKD 315.5
billion
• Effect of new listing regime, volatility in global markets and overall
economic slowdown reduced the number of GEM IPOs drastically.
• The number of large to jumbo deals fell from 2018’s level. IPO
proceeds of 2019 surpassed those of 2018 after the secondary
offering of Alibaba raised a huge amount of funds.
Source: HKEX, Deloitte’s analysis as at 31 December 2019; excludes proceeds from the exercise of over-allotment options by December 2019 MB issuers which did
not complete by 31 December 2019
© 2020. For information, contact Deloitte China. 9
In 2019, the number of new economy IPOs rose 48%. Without
the support of mega IPOs, which boosted the market in 2018,
total proceeds slipped by 20%.
Industry distribution of new Industry distribution of new
2018 economy IPOs (by number) economy IPOs (by proceeds raised)
2019 2018 2019 2018
2019
2% 11% 1% 2%
27 25% 19%
40 new listings 40% 44%
26%
1%
HKD187.2
55%
new listings 58%
20%
HKD150.0 billion 4% 74%
3% 11% 4%
billion
Energy & Resources Financial Services
Health Care & Pharmaceutical Industrial
Property Consumer Business
TMT Others
Proceeds 20% • The TMT and health care & pharmaceutical sectors dominated new
No. of new economy IPOs by number.
listings 48% • In 2019, the proportion of health care & pharmaceutical IPOs rose by
number and proceeds raised.
• Nine pre-revenue biotech IPOs completed, up 80% from 2018.
• Alibaba became the first overseas-listed issuer to raise a large pool of
funds in a Hong Kong secondary offering.
Source: HKEX, Deloitte’s analysis as at 31 December 2019; excludes proceeds from the exercise of over-allotment options by December 2019 MB issuers which did
not complete by 31 December 2019
© 2020. For information, contact Deloitte China. 10Overview of HK IPO Market - 2019
The number of new listings hit a recent-year high in Q4 2019, but
funds raised remained below the level seen in Q4 2010 when AIA
and Agricultural Bank of China were listed.
Historical record high in proceeds raised Recent-year record in Q4 new listings
（HKD billion）
70 300
7
60
250
12
50
3
3 33 17 8 200
Number of IPOs
13
25
Proceeds
40 20 1
5 150
49 8 5
30 19 20 59
5 1 10 17
2 2
47 3 7 29 100
20 3 4042 38 2
5 9 16
2 37 0 2 3 3 5 27 5
4 2 6 3031 32
18 1 16 24 2716161939 9
23 22 20 18 50
10 00 1421 15 5 11
20 20
13 10 26 10121310 18 13
7 7 13 6 13
0 0
Q1'09
Q2'09
Q3'09
Q4'09
Q1'10
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
MB IPOs GEM IPOs IPO proceeds
Source: HKEX, Deloitte’s analysis as at 31 December 2019; excludes proceeds from the exercise of over-allotment options by December 2019 MB issuers which did
not complete by 31 December 2019
© 2020. For information, contact Deloitte China. 11Overview of HK IPO applications - 2019
There were fewer active or under processing applicants than in
2018. More applicants withdrew pending improvements in market
and economic conditions.
Total no. of applications
300 372 19%
received*
IPO applications
accepted and under
processing 119 162 27%
Lapsed applications
(approved in principle 74 66
but stock not listed) 12%
Rejected applications 25 25 0%
Withdrawals
21 14 50%
Returned applications
0 N/A
4
2019 2018
Source: HKEX and Deloitte’s analysis as at 31 December 2019.
*Includes investment vehicles applying for listing under Chapters 20 and 21 of the MB Listing Rules, applications for transfer from GEM to MB, applications
deemed new under Rule 8.21C or Rule 14.84 of the MB Listing Rules, and very substantial acquisitions regarded as reverse takeovers under Rule 14.06(6) of the
MB Listing Rules or Rule 19.06(6) of the GEM Listing Rules
© 2020. For information, contact Deloitte China. 12Overview of HK IPO applications - 2019
Listing applications rejected remained high
#1 #8
Lack of commercial rationale Failure by sponsor to
for listing and thus no satisfy independence
genuine funding need requirement
#2 #7
Unsupported valuation - Failure to meet minimum
forecasted P/E ratios net profit requirements after
higher than those of Suitability excluding non-ordinary
industry peers course income
x
#3 Eligibility #6
Packaging -
Sustainability of business
reorganization solely to
meet listing eligibility
requirements
#4 #5
Deterioration of financial Suitability of director/ person
performance of substantial interest or
controlling shareholder
© 2020. For information, contact Deloitte China. 13Overview of HK IPO applications - 2019
SFC’s Active Front-loaded Regulation on IPO applications
The listing applicant,
which was engaged
in the transport
Case Withdrawn business, chartered
a majority of its
The listing applicant was vehicles to a third-
in the retail business, party, which was not
and diversified into licensed to operate
wholesaling during the them. The third-
track record period party in turn
(TRP). The documents instructed the
with its application applicant to operate
showed revenue rose the vehicles. Such an
significantly in the operating
previous year due to its arrangement
marketing efforts and appeared to
sales to a wholesaler, contravene the
which on-sold its conditions of the
products to an e- applicant’s vehicle
commerce platform. operating license.
Upon further enquiry, The operating
the marketing efforts arrangement was
only began near the terminated shortly
very end of the TRP, and after the end of the
sales of its products on TRP.
the e-commerce Case Lapsed
platform were minimal.
© 2020. For information, contact Deloitte China. 14Overview of HK IPO Market - 2019
The 5 largest IPOs were a mix of new and traditional economy
businesses. Alibaba sent funds raised up 18% to HKD178.5 billion
compared to just HKD151.9 billion in 2018.
2019
W
1. Alibaba - SW 2. Budweiser 3. ESR Cayman 4. Shenwan 5. Hansoh Pharma
(HKD101.2 billion) Brewing APAC (HKD14.1 billion) Hongyuan – H Shares (HKD9.0 billion)
(HKD45.1 billion) (HKD9.1 billion)
2018
W W
1. China Tower - 2. XIAOMI-W 3. MEITUAN-W 4 . Ping An 5. Jiangxi Bank –
H Shares (HKD42.6 billion) (HKD33.1 billion) Healthcare and H Shares
(HKD58.8 billion) Technology (HKD8.6 billion)
Source: HKEX and Deloitte’s analysis as at 31 December 2019. (HKD8.8 billion)
© 2020. For information, contact Deloitte China. 15HK’s new secondary listing rules – Chapter 19C (Main Board)
In effect since 30 April 2018
Chinese concept
stocks
‘Innovative’ company?
(1) New technologies; (2) innovations; and/ or
(3) a new business model, which also serves to
differentiate the company from existing players
What is an ‘innovative’
Qualifying primary stock exchanges company?
New York Stock Exchange, Nasdaq or London • Its success is demonstrated to be
Stock Exchange’s Main Market (“premium” only) attributable to the application, to
the company’s core business, of
(1), (2), and/ or (3);
Good track record of regulatory compliance • R&D is a significant contributor
to its expected value and
At least two full financial years constitutes a major activity and
expense;
• Its success is demonstrated to be
Expected market capitalization at time of listing* attributable to its unique
If below HKD40 billion at time of secondary listing, needs at least features/ IP; and/ or;
HKD1 billion revenue in most recent audited financial year and • It has outsized market cap./
expected market capitalization at time of secondary listing of at intangible asset value relative to
least HKD10 billion.
its tangible asset value.
Qualified to seek listing
*19C.03 Rules 8A.04 to 8A.06 do not apply to a Qualifying Issuer under Chapter 19C
seeking a secondary listing under Chapter 19C.
© 2020. For information, contact Deloitte China. 16A concessionary secondary listing route
In effect since 30 April 2018
Allows Qualifying Issuers with centers of gravity
in Greater China to seek secondary listings
Before the introduction of Chapter 19C, most Chinese concept
stocks were allowed to seek primary dual listings in HK only.
Automatic waivers
Issuers can benefit from automatic waivers under Chapter
19C, in particular being exempted from complicated rules
related to connected transactions and others on disclosures of
notifiable transactions, new share offerings, company reports
and acquisitions.
Key shareholder protection standards*
Issuers do not have to alter their constitutional documents.
However, they need to demonstrate they have met key
shareholder protection standards.
WVR arrangements*
Issuers can list their existing weighted-voting rights structures
and are not subject to shareholder protection requirements for
shares with different voting rights that are applicable to new
WVR issuers in HK (excluding disclosures).
Contractual arrangements*
Issuers can conduct secondary listings with their existing
contractual arrangements, but must provide a PRC legal
opinion that these arrangements comply with PRC laws, rules
and regulations, as well as comply with the disclosure
requirements.
*The rules only apply to Greater China issuers with primary listings on qualifying exchanges on or before 15 December 2017. Other issuers
may need to change their constitutional documents, WVR structures, or contractual arrangements to fulfill all the requirements under HK
listing rules or listing guidance.
© 2020. For information, contact Deloitte China. 17Overview of HK IPO market - 2019
The proportion of overseas company IPOs grew in number and
proceeds raised due to Budweiser Brewing APAC’s mega listing
No. of IPOs by Location of Issuer Proceeds raised from international listings increased
• The percentage of Chinese Mainland IPOs grew 16
13% percentage points from 44% to 60%. Representation of
Hong Kong and Macau companies fell 17 percentage points
Chinese Mainland to 27%.
• Proceeds raised from IPOs by Mainland companies reached
HK and Macau
27% approximately HKD232.8 billion, about 74% of total
60% Overseas
proceeds raised in the market, versus 95% (HKD271.5
billion) in 2018.
• 21 companies from Singapore, Malaysia, US, Thailand,
Belgium and Germany raised a combined HKD48.35 billion
in 2019. This was up considerably from the HKD4.32 billion
P/E Multiples of HK IPOs across 24 IPOs by international firms in 2018.
4% < 5x
Nearly half of IPOs were priced at 10x-20x
10% 5x - < 10x
9% 18% • 46% of IPOs were priced at P/E ratios of 10x-20x, 6
10x - < 20x
3% percentage points more than the 40% in 2018.
20x - < 30x • 22% of IPOs were priced at P/E ratios of at least 20x,
10% 13 percentage points fewer than the 35% in 2018.
30x - 40x was fell from 12% in 2018 to 9% in 2019.
46% Listings by way of
introduction/loss
Source: HKEX, Deloitte’s analysis as at 31 December 2019; excludes proceeds from the exercise of over-allotment options by December 2019 MB issuers which did
not complete by 31 December 2019
© 2020. For information, contact Deloitte China. 18HK IPO valuation analysis - 2019
More than half of the year’s IPOs were priced below the mid-
point or at the bottom of their price range.
2019 2018
3.7% 4.4%
Top of range
1.3% 13.0% 0.5% 17.0%
Above mid-point of range
At mid-point of range
13.0% 29.8%
Below mid-point of range
At bottom of range 17.0%
47.2% 7.5% Below range
Fixed price
9.8%
14.3% Others 21.5%
Source: HKEX and Deloitte’s analysis as at 31 December 2019.
© 2020. For information, contact Deloitte China. 19HK IPO deal size analysis – 2019
Average deal sizes on the MB and GEM were less than in 2018. The
former declined by 8% and the latter dropped a slight 4% from
HKD67.47 million to HKD64.64 million.
Deal Size of HK MB’s IPOs
(excluding mega deals that raised at least US$1b each)
Large (USD1b - > USD0.5b) Medium (USD0.5b - > USD0.2b)
(HKD billion) (HKD billion)
8%
Small (Industry distribution of HK IPOs (by number) in 2019
The property sector surpassed other industries again. Consumer
business and TMT came in equal 2nd.
2019 2018
Energy & Resources
4% 7%
Financial Services
21%
5% 17% 1%
9%
Health Care &
11% Pharmaceutical
Industrial 8%
12% Property
10%
25%
21% Consumer Business
TMT
26% 23%
Others
Source: HKEX and Deloitte’s analysis as at 31 December 2019.
© 2020. For information, contact Deloitte China. 21Industry distribution of HK IPOs (by proceeds) in 2019
TMT took lead and the retail sector trailed
2019
Others 0 2%
TMT 122 8%
Consumer Business 73 13%
Property 43 38%
Alibaba drove
Industrial 6 2%
TMT sector
Health Care & Pharmaceutical 40 proceeds
14%
Financial Services 25
Energy & Resources 7
23%
(HKD billion) 0- 20 40 60 80 100 120 140
Energy & Resources Financial Services Health Care & Pharmaceutical Industrial Property Consumer Business TMT Others
2018
Others 0
4%
10% TMT 121
Consumer Business 55
Xiaomi and
42% China Tower 13% Property 27
boosted TMT Industrial 4
sector’s IPO 2% Source: HKEX, Deloitte’s analysis as at
Health Care & Pharmaceutical 38 31 December 2019; excludes proceeds
funds 10% from the exercise of over-allotment
options by December 2019 MB issuers
Financial Services 29 which did not complete by 31
December 2019
19% Energy & Resources 12
(HKD billion) 0 20 40 60 80 100 120 140
© 2020. For information, contact Deloitte China. 22Outlook for IPO markets in 2020 © 2020. For information, contact Deloitte China. 23
The Mainland and HK capital markets transformed rapidly in 2019 with
more integration and internationalization. More developments are
expected to open up more fundraising opportunities for different
companies in 2020, especially those from the new economy.
SSE STAR Market launched with The number of pre-revenue biotech IPOs
marketization and a pilot registration-based continued to grow in 2019, exceeding 2018’s level
regime. Seventy companies listed over the when the new listing regime was launched.
year including a H-share issuer.
Internationalization of the A-share market
The market has been concerned about how continued to accelerate including stocks’ addition
虚拟文字阅读参
long the impact of the new board (STAR to some foreign stock indices, the inclusion of
考Market) can be sustained. STAR shares in Stock Connect regimes and the
此处为虚拟文 launch of Shanghai-London Stock Connect.
字，并非用于阅
The State Council proposed a registration-
读based regime and reform of ChiNext. QFII and RQFII quotas were lifted. Foreign
investors were encouraged to participate in the
STAR Market.
HKEX formed a commission dedicated to
developing new offering mechanism/s that The SSE STAR Market 50 Component Index
is expected to complete within a year. could be launched in 2020 and further
stimulate IPO activity.
Priority work on optimizing the new listing
Strict IPO reviews have become the norm.
regime as part of HKEX’s Strategic Plan
STAR applicants were rejected as well.
2019-2021 is under the spotlight.
Two WVR stocks were incorporated into HK The CSRC announced reform of the H-share full-
Stock Connect at last on 28 October 2019. circulation scheme, allowing existing and future
The market is looking forward to the H-share issuers to convert all their domestic
corporate WVR beneficiary consultation. shares into H shares.
A consultation on the addition of WVR Some new NEEQ issuers withdrew delisting
stocks to the Hang Seng Indices could be applications amid anticipation of deeper bourse
introduced in early 2020. reform.
© 2020. For information, contact Deloitte China. 24Reform of full-circulation H shares to stimulate more share
conversions and flotations in HK
Interests of key and ordinary shareholders to be better aligned
Distribution of Listed Companies
in HK in 2019
MB GEM
Successful trial in 2018 7%
6%
6%
1%
Three trial companies, 8%
namely Legend Holdings,
AviChina Industry and Full launch
Tech, Shandong Weigao
Announced in 79%
Group Medical Polymer 93%
November 2019
Listed H shares
Dually listed companies (A+H shares)
Market Capitalization of Listed Companies Listed red-chip stocks
in HK in 2019 Qualified H- Other listed companies
MB GEM share issuers* Total: 2,071 Total: 378
17% 3%
Chinese companies Convertible shares
14% that plan to make H-
share offerings in HK 1. Domestic shares held by
69% domestic shareholders prior to
HK listings
97% 2. Domestic shares issues in the
Listed H shares
Mainland after HK listings
Listed H shares (A+H listed co.) 3. Non-listed shares in circulation
Others held by foreign shareholders
Total: HKD38,058 billion Total: HKD107 billion
Source: HKEX and Deloitte’s analysis as at 31 December 2019.
*excludes dually listed companies that have A shares traded in a stock exchange in Shenzhen or Shanghai.
© 2020. For information, contact Deloitte China. 25The average valuation gap between the MBs in HK and Shanghai
continued to narrow sharply. Due to the limited number of STAR
issuers, STAR stock P/E ratio remained high.
90
80
70
Average P/E Ratio (x)
60
50
40
30
20
10
0 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
HK MB 10 11 11 11 11 12 9 10 10 10 11 11 13 14 15 16 12 13 11 10 12 11 11 13
HK GEM 11 11 12 12 61 85 69 77 58 59 62 71 48 37 37 37 42 43 34 27 27 22 21 22
SH A-share 11 10 11 16 19 21 15 18 15 14 15 16 17 17 18 18 18 15 14 13 16 14 14 14
SH STAR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 74 74
SZ A-share 26 26 32 35 46 55 39 53 42 41 42 42 40 36 38 37 33 27 23 20 26 23 24 26
Source: HKEX, Shanghai Stock Exchange and Deloitte’s analysis as at 31 December 2019.
© 2020. For information, contact Deloitte China. 26Outlook for HK IPO Market in 2020 © 2020. For information, contact Deloitte China. 27
Industry distribution of active HK listing applications in 2019 (by
number)
The number of MB and GEM applications declined from 2018’s
level. Property, consumer and TMT businesses represented the
majority of MB IPO applicants. Consumer companies represented
half of GEM applications.
MB GEM
Consumer Business
Energy &
8% Resources
3%
24% Financial Services 17%
13%
Property
TMT 7%
3% 50%
4% Manufacturing
24% 13%
Health Care &
Pharmaceutical
24% Others 7% 3%
No. of applications: 119 No. of applications: 30
Source: HKEX and Deloitte‘s analysis as at 31 December 2019.
© 2020. For information, contact Deloitte China. 28Number of active listing applications in HK by overseas companies in
2019
Singapore companies continued to dominate overseas company HK
listing applications. Most overseas applicants were from the consumer
sector.
MB GEM
5% Canada
25%
Malaysia
42%
By overseas market 50%
Singapore
53%
Philippines
25%
5% Consumer Business
5%
Energy & Resources 25% 25%
Financial Services
By industry sector of 53%
overseas applicants 37% Property
TMT 25% 25%
Manufacturing
No. of applications: 19 No. of applications: 4
Source: HKEX and Deloitte's analysis as at 31 December 2019.
© 2020. For information, contact Deloitte China. 29Deloitte has a positive outlook for the HK IPO market in 2020
1. 8. Reform of new offering
mechanism
Inclusion of 2 WVR
stocks in Stock Connect
7.
2. Proposal on limited
partnerships for
Secondary offering private equity funds
by US-listed
Chinese tech giant
with WVR in HK About 160 IPOs
to raise
HKD220-250 6.
billion Potential
3. consultation on
corporate WVR
Launch of reform
beneficiaries
in full-circulation
of H shares
Forecast of
2020
Biotech IPOs
4. 5. Research on
inclusion of WVR
Source: HKEX, Deloitte’s estimates. The final figures of 2020 are to be driven by
shares in Hang
factors including the macro-economic and geopolitical developments over the year. Seng Indices
© 2020. For information, contact Deloitte China. 30Q&As © 2020. For information, contact Deloitte China. 31
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