Hong Kong's image as world's IPO capital takes a hit as investors await policy clarity

Hong Kong's image as world's IPO capital takes a hit as investors await policy clarity

REUTERS/Bobby Yip

Hong Kong’s largest initial public offering of the year this week is a welcome boost for the city but is unlikely to overcome the geopolitical tensions and lack of policy clarity that have deterred investment in what was once the world’s largest IPO venue.

As of mid-September, the total IPO deal value in Hong Kong stood at only $7.77 billion, the lowest since 2013. That volume is expected to be boosted by Thursday’s IPO from Leapmotor, which is likely to be the biggest public debut by a Chinese electric vehicle maker. But the $1.03 billion that the listing could raise is still overshadowed by the $6.23 billion IPO on the same bourse by Chinese tech company Kuaishou last year.

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