Chinese IPOs in the U.S. and Hong Kong Are Set to Increase Next Year, Analysts Say

MoFo’s Global Co-Chair of Private Equity Group Marcia Ellis was quoted in an article titled, “Chinese IPOs in the U.S. and Hong Kong are set to increase next year, analysts say,” published on CNBC.

According to Marcia, Chinese companies are becoming increasingly interested in getting listed in Hong Kong or New York due to difficulty in getting listed in Mainland China and pressure from shareholders to quickly achieve an exit.

“After a couple of slow years, we generally expect the IPO market to revive in 2025, bolstered by interest rate decreases and (to some extent) the conclusion of the U.S. presidential election,” said Marcia. “While there is a market perception of regulatory issues between the U.S. and China as being problematic, many of the issues driving this perception have been solved,” she said.

“Geopolitical tensions make Hong Kong a preferred market,” said Marcia, “but the depth and breadth of U.S. capital markets still make many companies seriously consider New York, especially for those that focus on advanced technology and are not yet profitable, who sometimes believe that their equity stories will be better received by U.S. investors.”

Read the full article.