Hong Kong’s equity capital markets plummet 27% to US$37.6b in 2011

Hong Kong’s equity capital markets generated US$37.6 billion of proceeds so far this year from 225 deals, down 27% from the close of Q3 last year attributable to the global market conditions and several postponed offerings.

HONG KONG ECM BY ISSUE TYPE
IPOS:  US $20.5 billion
FOLLOW-ONS:  US$16.7 billion
CONVERTIBLES:  US$504 million

This week’s CITIC Securities’ IPO marks the latest in the slew of equity raised from the Financials sector, registering total issuance of US$12.7 billion year to date from 47 deals, a decrease of 44% year-over-year.

Morgan Stanley is the Top Bookrunner for equity issues in Hong Kong, underwriting proceeds of US$7.2 billion so far, an increase in market share of 6% and unseating Goldman Sachs from last  year’s top spot in Q3.

Chinese companies that typically dominate the HK equity market have showed signs of decline this quarter; China company IPOs in Hong Kong fell from US$16.3 billion in Q32010 to the current total US$8.0 billion.

Non-Chinese company IPOs issues in Hong Kong grew 120% to reach US$8.6 billion so far this year, as issuers seek comparative liquidity in Asia.