Hong Kong equity fundraising has dropped to the slowest pace since the global financial crisis as economic and regulatory doubts compound concerns over Chinese companies that once drove a steady drumbeat of lucrative listings.
Total fundraising from debut offerings, follow-on share sales and convertible bonds in Hong Kong fell to $4.9bn in the first three months of 2022, according to data from Refinitiv, reflecting a drop of 87 per cent from the previous year and marking the worst quarter for the city’s equity capital markets since late 2008.
The slowdown highlights investor concerns about pumping fresh capital into Chinese companies at a time when coronavirus, regulatory uncertainty and the Ukraine war are clouding the outlook. Despite a string of big listings this year in Asian markets, there has been little dealmaking in Hong Kong to date.