Business

China’s regulatory crackdown a drag on HK’s IPO pipeline

Floor traders work during afternoon trading at the Hong Kong Stock Exchange, in Hong Kong. — Reuters
 
Floor traders work during afternoon trading at the Hong Kong Stock Exchange, in Hong Kong. — Reuters
HONG KONG: Hong Kong’s buzzing initial public offering (IPO) pipeline is likely to taper off in the second half of 2021, as Chinese firms temper their expectations for valuations amid a drastic regulatory crackdown in the mainland, dealmakers said.

Investors, on tenterhooks as China’s assault on fast-growing private firms has led to an uncertain environment, are also expected to be selective of which deals to buy into, they added.

China’s months-long regulatory crackdown has involved firms in the $120 billion private tutoring sector and behemoths like Alibaba, Ant Group and ride-hailing giant Didi. — Reuters