China IPOs May Sink to a Quarter of Last Year's; HK Tipped as Global Leader, KPMG Says
Yicai Global|Xu Wei
/SOURCE : yicai

(Yicai Global) Dec. 11 -- The number of companies going public in mainland China this year is expected to tumble to a quarter of 2017's record total due to a significant drop in successful applications, according to a new report from KPMG.

Some 105 firms are expected to have listed on the country's A-share market by the end of the year, down from a peak of 436 last year, the report said, adding that stricter approvals processes are to blame.

Total proceeds from initial public offerings are expected to drop 40 percent to CNY138 billion (USD20 billion) from CNY230 billion last year.

KPMG expects Hong Kong to regain its status as the global IPO leader driven by a new listing system for emerging and innovative industry companies.

Total funds raised from floatations in the special administrative region are predicted to hit HKD300 billion (USD38.4 billion) for 2018 and exceed HKD200 billion next year.

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