Hong Kong brewed up a tepid IPO market in the first half of the year, when the biggest new listing was a tea shop chain whose shares sank on their trading debut.
But there could be signs of a recovery in the tea leaves. Analysts say the listing pace should pick up later in the year, pushing Hong Kong back up the global ranks of IPO destinations after several lean years.
The subdued performance of Hong Kong stocks this year put a squeeze on the IPO pipeline. Only 30 companies went public on the Hong Kong Stock Exchange in the first half, all but one of them on the main board. The IPOs raised about HK$13.1 billion ($168 million) in total, 27% less than in the same period last year. Not only did Hong Kong lag behind U.S. market heavyweights such as the New York Stock Exchange and Nasdaq, it also ranked below India as an IPO hub.