In Depth: Hong Kong IPO Market Stages Comeback After Dismal 2023

The amount of money raised through new listings jumped 80% to HK$83 billion this year, with most of that coming in the second half as confidence improved and earlier supportive measures started to bea

The amount of money raised through new listings jumped 80% to HK$83 billion this year. Photo: AI generated

Investors in the Hong Kong IPO of Chinese cosmetics firm Mao Geping Cosmetics Co. Ltd. got an early Christmas present on Dec. 10 when the company made its debut — the shares rose as much as 92% before closing the day 77% higher.

It was the best first-day performance in four years and a further sign that the three-year slump in IPOs on the Hong Kong stock market is finally over.

As of Dec. 8, 63 companies, mostly from the Chinese mainland, had listed on the Hong Kong Stock Exchange (HKEX) this year, according to a recent report from international accounting firm KPMG. They raised a combined HK$83 billion ($10.7 billion), 80% more than in 2023, and pushing the exchange back up to fourth place in the global ranking for IPO fundraising. Of the total, HK$69 billion came in the second half of the year, driven by several sizable deals, including the four largest IPOs in the past two years, the report said.

It’s a welcome turnaround from 2023, when the city’s IPO market plunged to its worst showing in 20 years and only HK$46.3 billion was raised in total from 73 listings amid poor market sentiment.