London Daily

Focus on the big picture.
Monday, Jul 13, 2026

Hong Kong listings dry up under shadow of protests

Hong Kong listings dry up under shadow of protests

‘Terrible’ conditions on stock market deter deals but some expect pipeline to pick up later in year

When AB InBev’s Asia brewing business launched its second attempt at a Hong Kong stock market listing last week, chief executive Jan Craps faced a volley of questions about whether the territory was still the best venue for an initial public offering of almost $5bn after more than three months of political upheaval.

“We believe Hong Kong is the best financial centre for us in Asia to do the listing,” he said. “There is a very bright future for Hong Kong as a financial centre.”

Mr Craps is unusually upbeat. The flow of initial public offerings in Hong Kong has nearly evaporated in recent months, as companies hold off on planned listings in the face of volatility spurred by an escalating US-China trade war and intensifying violence between police and protesters on the Asian financial hub’s streets.

Hong Kong Exchanges and Clearing, the local bourse operator, has seen only two IPOs price since the end of July, raising a total of just $33m and taking cumulative funds raised in 2019 to $10.7bn, according to data from Dealogic.

That is just a third of the total from this time last year, when Hong Kong was well on its way to taking the global listings crown for 2018. Meanwhile, the number of active listings applications from companies yet to go ahead with an offering has climbed to a record high of more than 200, according to KPMG.

The fall is particularly sharp thanks to a run of big-ticket listings in 2018 that saw Xiaomi, Meituan Dianping and China Tower raise almost $16bn in total between the end of June and mid-September.

But HKEX’s rivals in New York have seen no such drop-off. The New York Stock Exchange and Nasdaq have priced a combined $5.39bn worth of IPOs in August and September across 19 deals. Both are now on a course to dethrone Hong Kong’s exchange as the world’s top listings destination just as it targets London Stock Exchange shareholders with a charm offensive, selling them on Hong Kong’s potential as the gateway to a globalising Chinese market in its bid to buy the British bourse.

Jason Elder, a partner at law firm Mayer Brown in Hong Kong, said the uptick in volatility for the territory’s stock market had unnerved companies that were in the process of listing this year.

“It becomes very difficult to price your IPO against a volatile window, I think that’s why people are waiting,” Mr Elder said. But he added there was little sign of companies abandoning Hong Kong for other bourses, with recent reforms to the exchange’s listing rules — such as allowing weighted voting rights — helping prevent applicants from changing venues.

“That all helps, but it only helps against a backdrop of positive investor sentiment,” he said.

Sentiment in Hong Kong has worsened markedly since the end of July, with the Hang Seng stock index falling 9 per cent in early August. Earlier this month, Fitch became the first big rating agency to downgrade the territory since the start of mass protests demanding withdrawal of an extradition bill that would have allowed criminal suspects to be sent to mainland China.

Protester demands have since expanded to include greater police accountability and democratic reforms, with large-scale demonstrations continuing despite plans announced by Carrie Lam, Hong Kong’s chief executive, to fully withdraw the bill.

“The Hong Kong IPO market has been absolutely terrible,” said the head of Asia capital markets at one international bank. He added his bank and others had also begun opening credit lines to many high-growth private companies in the region, relieving the pressure for a quick listing.

Hong Kong also faces a challenge from China’s new technology and science-focused Star Market in Shanghai. The high-profile project has direct backing from president Xi Jinping and threatens to swipe Chinese tech listings away from the territory, although there is no sign yet that it could touch bigger deals such as AB InBev or the planned secondary listing of Alibaba, which could raise up to $20bn if it goes ahead.

Louis Lau, a partner at KPMG China’s capital markets advisory group, said there were “a lot of uncertainties, globally and locally” behind the quiet spell for IPOs, including the market impacts of trade tensions and recent social unrest in Hong Kong. “It all depends on the market conditions,” he said.

KPMG expects the taps of Hong Kong’s IPO pipeline to turn back on in the fourth quarter amid encouraging signs such as the AB InBev listing and the revival of another application by logistics company ESR Cayman. But Mr Lau added that the chance of Hong Kong catching up with New York’s bourses by the year’s end really depended on whether all big deals, such as that by Alibaba, are completed by the end of the year.

“Otherwise the gap is pretty big,” he said.

Newsletter

Related Articles

0:00
0:00
Close
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
National Health Service Expands Artificial Intelligence Diagnostics Across England to Reduce Screening Backlogs
United Kingdom Launches Fifty Billion Pound Infrastructure Fund to Accelerate Housing and Construction
UK Medical Chiefs Update Health Guidance to Promote Everyday Physical Activity
Office of Communications Keeps Wikipedia Under Review Under UK Online Safety Rules
UK Defence Ministry Expands Deep-Strike Capability Through Precision Missile Programme
Russell Group Universities Warn Funding Cuts Could Damage NHS Workforce Training
UK Parliament Calls for National Emergency Broadcast as Heatwave Conditions Intensify
UK and Netherlands Strengthen Naval Cooperation With New Amphibious Defence Partnership
UK Defence Ministry Joins International Missile Programme With One Hundred and Ninety Million Pound Investment
Bank of England Warns Middle East Conflict and AI Risks Could Pressure UK Economy
UK Government Introduces New Rules to Limit Foreign Influence in Political Donations
UK and France Prepare Naval Mission to Protect Shipping Through Strait of Hormuz
United States Pressures UK to Increase Defence Spending at NATO Summit
Bank of England Warns Artificial Intelligence Investment Boom Could Create Financial Stability Risks
Bank of England Begins Direct Oversight of Critical Technology Providers Supporting UK Finance
Andy Burnham Set to Become UK Prime Minister After Labour Leadership Race Clears Path to Downing Street
Scottish Fishing Industry Calls for Emergency Support Amid Rising Costs
UK Supports Stronger European Response to Russian Actions in Ukraine
Devon and Cornwall Police Release Suspect in Ann Widdecombe Murder Investigation
×