UBS(US:UBS) The Economic Times·2025-12-15 00:54Key Points - Hong Kong's share sales surged to over $73 billion, making it the top fundraising location in Asia for the first time since 2013, ranking just behind the US globally [1][26] - The increase in share sales is attributed to significant deals by Chinese companies, including a $5.3 billion listing by battery maker Contemporary Amperex Technology and over $5 billion raised by BYD Co. and Xiaomi Corp. [2][26] - The IPO pipeline in Hong Kong remains robust, with around 300 companies waiting to list, indicating a strong deal-making environment [6][26] - Investor sentiment is shifting towards greater discipline regarding valuations and fundamentals following a strong year, with a focus on high-quality deals in innovation and advanced manufacturing [7][26] - The Hong Kong market has benefited from China's ambitions in artificial intelligence and biotechnology, as well as efforts to boost domestic demand [9][26] - Heavyweight IPO candidates expected next year include Syngenta Group and A.S. Watson Group, alongside potential listings from China's AI sector [11][26] - Hong Kong listings have generated an average return of nearly 50% this year, outperforming the Hang Seng Index, which has gained 29.5% [15][26] - In India, IPOs reached a record of over $20 billion, driven by domestic mutual funds and retail investors, with significant deals expected in the coming year [18][26] - Concerns about high valuations persist, as approximately half of the companies that listed in India this year are trading below their debut prices [21][26] - Retail investors in mainland China are showing strong interest in IPOs of chipmakers, aligning with the government's goal of technological self-sufficiency [24][26] - The overall issuance volume in Hong Kong is expected to remain strong in the first half of next year, although geopolitical factors may impact future fundraising [25][26]