The region has got off to a strong start with deal volume up by 71% from 2016 and at 530 is the highest deal volume since 2011. Deal value was up by 59% from H1 2016, raising a USD 37.2 billion but was still 27% lower than H1 2015. The biggest reason for the change is the decline in cross-border capital raised in Hong Kong, which fell for the third year in a row.

Domestic listings volume grew by 74% to 498 transactions; domestic capital raising increased by 91% to USD 31.5 billion; and cross-border IPO volume rose by 38 % to 33 transactions. The increase in the total number of cross-border transactions listed on Asia Pacific-based stock exchanges made little impact to offset the 19% decline in the amount of capital raised in Hong Kong.

Mainland China exchanges saw a surge in new listings, given the country’s recent move to allow those exchanges to take over the IPO approval process and clear the backlog of companies waiting to list, while Southeast Asia IPO activity looks set to pick up in the next few quarters, led by Singapore, Thailand and the Philippines. This is driven by improving equity markets, lower volatility and ample liquidity in the market looking for investment opportunities.
The region still accounts for 41% of total global capital raised in the first half of 2017, up from a 39% share in the first half of 2016. Financials and healthcare were the busiest sectors.
The Cross-border index in Asia Pacific fell by 36% for the first half of 2017, as domestic deals dominated the share of new equity deals in this region and the cross-border capital raised in the first half of 2017 experiencing a decrease of 17%.
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HOLLAND__20David
“The biggest influence on overall cross-border capital markets activity in Asia Pacific are Chinese companies listing on the Hong Kong exchange, which fell in the first half of 2017. While the number of transactions increased from the low base in 2016, transactional activity hasn’t tracked the strong equity markets across the region. Looking forward, we think we will see a modest increase in transactional activity overall across the region. Capital flows out of China continue to represent the biggest area of uncertainty in capital markets in Asia Pacific.”
David Holland Head of Capital Markets in Asia Pacific at Baker McKenzie
KEY-ASIA-PACIFIC-DATA-POINTS
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CROSS-BORDER IPO INDEX: ASIA PACIFIC
CROSS-BORDER IPO INDEX: ASIA PACIFIC
KEY ASIA PACIFIC DATA POINTS
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