Hong Kong's IPO market expected to rebound in 2023, but the biggest one so far flopped in its debut

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Hong Kong's IPO market is set for a rebound after being among the worst-performing markets in 2022 but a recent debut flop of a Chinese company dampened hopes.

"The sentiment in the IPO markets has not built up yet," Ringo Choi, Asia-Pacific IPO leader at EY, told CNBC.

"A lot of industries are suffering at the moment," said Choi, noting that tech companies are facing pressure from U.S.-China tensions and falling electric vehicle prices, among other setbacks. "Valuations at this moment have not picked up as compared to two to three years ago. We still need some time," said Robert Lui, Hong Kong offering leader of Deloitte China's Capital Market Services Group.for its third-straight year of declines.

Besides high inflation and rising rates globally, stocks were also weighed down by Beijing's zero-Covid strategy and a property market slump in the city. Chinese companies tend to launch secondary listings in Hong Kong as another venue to access investors and capital.

 

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