Mainland firms shy away from HK floats

The lackluster sentiment prevailing in the equity markets may deter mainland firms from testing the Hong Kong initial public offering (IPO) waters during the first half of this year, despite the impetus provided by the central government.

The government had reiterated in its latest Pearl River Delta blueprint that it would encourage companies to use the IPO route to secure financing.

Marketmen, however, opine that the unfavorable conditions would act as a deterrent for mainland companies.