IPO(Initial Public Offerings) industry in HongKong Term Paper

IPO(Initial Public Offerings) industry in HongKong - Term Paper Example The current discussion is aimed at analysing the IPO industry in Hong Kong. In last few years, IPOs have been transforming the financial structure of a number of private limited companies in the country. Hong Kong is considered as the world’s leading financial centers having a capitalist economy driven by low taxation and free trade. Hong Kong is considered as the most important international financial center and in the 2009-10 year, it raised 22% of the worldwide IPO capital making it the largest IPOs in the world and thus signifying the importance of IPOs. Hong Kong is considered as the international financial center mainly because of the passive government’s policies with no control over the imports and exports (Browning, 2014). Hong Kong has suffered a dip in the IPO volumes in last two years mainly because of the financial breakdown in the Asian and European economies. However, things have been improving a lot in last few years with a number of private limited companies lining up for the IPOs. The performance of Hong Kong IPO industry has been remarkably positive and lucrative in last few years making it one of the highly preferred economic destinations for a number of investors. The major purpose of the discussion is to understand the legal framework and procedures of the industry along with focusin g on the recent development and trends in a critical manner (Brown, 2014). As per the research conducted by KPMG (2013), it was found that funds raised via Hong Kong listing will increase to more than HKD200 billion in the year 2014. Hong Kong registered more than HKD 160 billion with more than 90 companies listed on the Hong Kong stock exchange. Furthermore, it is expected that the IPO industry of Hong Kong will witness a rise in IPOs by 78% from the previous year in the year 2014. This states the significance of