HK's IPO market taking off

So far, about $12 billion has been raised in Hong Kong, beating last year's $11.4 billion. That's still a long way behind the peak in 2010, when around $59 billion was raised.

Last week, a $200 million deal by Fu Shou Yuan International Group Ltd, a mainland-based company that manages burial grounds, also offered some excitement to the market. Investors showed strong interest in the offering as they see great potential for China's funeral industry amid the country's aging population.

In November, 16 IPO applications were filed to Hong Kong Exchanges and Clearing Ltd, aiming to raise $6 billion.

Wang Jianhui, chief economist at Southwest Securities Co Ltd, said that the IPO market is benefiting from the strong reform signal sent by Beijing at last month's Third Plenum of the 18th Central Committee of the Communist Party of China. The meeting mapped out encouraging changes for the world's second-biggest economy and has boosted global sentiment toward investment in China, he added.

Whether momentum can be kept in the Hong Kong market is doubtful, though, as the mainland plans to snap a 14-month hiatus and reopen the gates for IPOs in January.

Securities regulator pledged on Nov 30 to allow at least 50 companies to float shares by January next year. More than 760 IPO candidates are now in the pipeline, and the China Securities Regulatory Commission said it will take almost a year to assess all of them.

"(The resumption of IPOs on the mainland) will have some impact, but not big-time. An IPO is not just about raising money, and Hong Kong offers a lot more," said Zhang Qi, a stock market analyst at Haitong Securities Co Ltd.

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