HK losing its appeal as an IPO market

Despite strong end to the year, lower valuations scare off potential offerings

Hong Kong is likely to end this year as the world's second-largest market for initial public offerings after New York, thanks to several recent mega deals - but it is facing an uphill fight to lure newcomers in 2015, according to analysts.

A prolonged market slump in Hong Kong IPOs began in September apparently triggered by an outflow of capital back to the United States, and its persistently high listing costs have discourage many enterprises, especially those from the Chinese mainland, from floating in Hong Kong.