Hong Kong will be set to top global IPO market in 2018: KPMG

China Tower’s HK$54.3 billion IPO was the third quarter’s biggest deal, in addition to listings coming from so-called fresh economy companies contributed almost half of the funds raised inside quarter, KPMG said.

“fresh economy” refers to sectors based on technology in addition to the internet, including e-commerce, payments in addition to various other kinds of tech companies. Hong Kong introduced fresh rules designed to attract tech companies by allowing dual-class share structures with weighted voting rights in addition to biotech companies yet to make profits.

“Our analysis also highlights that will the fresh listing regime for companies coming from emerging in addition to innovative sectors will be transforming the Hong Kong bourse into a hub for ‘fresh economy’ companies,” KPMG said.

KPMG said that will three “pre-revenue” companies inside biotech sector in addition to two with weighted voting rights wrapped up IPOs inside first nine months of the year.

“We expect to see six to 10 pre-revenue biotech companies list by the end of 2018 as the trend continues,” the idea said.

Appetite to raise capital in Hong Kong will be robust even as the local stock market, hit by uncertainty over intensifying trade tensions between the United States in addition to China, languishes.

The benchmark Hang Seng Index will be down more than 7 percent since the start of 2018, in addition to earlier This particular month had fallen in excess of 20 percent since hitting a peak in January. the idea will be currently about 17 percent off that will peak.

William Ma, chief investment officer at Noah Holdings in Hong Kong, said that will Hong Kong’s overall market performance will be being hindered by factors beyond its control, including the current attractiveness of U.S. markets.

“the idea’s global sentiment towards emerging markets,” Ma told CNBC on Monday. “in addition to secondly (the idea’s) about the U.S.-China trade conflict. in addition to lastly the idea’s the U.S. market will be too strong.”

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