Despite potential competition from the mainland, some are less worried about Hong Kong’s prospects due to the different characteristics of markets there and on the mainland. Hong Kong is recognized as a place to raise money from international sources, whereas domestic retail investors feature more heavily in mainland markets.
Given that stark difference, it’s unlikely that Hong Kong will lose out on business to the mainland markets, said Eddie Wong, capital markets services partner at PwC Hong Kong. Instead, he said, the new rules are expected to make capital markets in Hong Kong and on the mainland more complementary.
Wong said “many, many more” companies were expected to apply under Hong Kong’s new listing rules in the months ahead. He added that the second half of the year has typically seen more activity when it came to companies listing in the territory.
Specifically, there are now at least five large companies in the process of preparing IPOs in Hong Kong, Wong told CNBC. At least two of those companies were estimated to raise funds of around 100 billion Hong Kong dollars ($12.7 billion) between them, he said.