China's IPO activity expected to pick up in 2013: Ernst & Young

HONG KONG, Dec. 19 (Xinhua) -- After a weakened IPO activity in greater China in 2012 due to lack of maga deals, Ernst & Young expects China's IPO market to pick up in 2013 as the global economy recovers and the government's supportive policies start to take effect, the accounting firm said Wednesday.

The assurance partner of Ernst & Young Patrick Law said following the lifting of restrictions for the mainland China's companies to list in Hong Kong, more small and medium sized enterprises will complete their IPOs in Hong Kong by the issue of H-Shares in a wide range of sectors, particularly the real estate firms.

He expects that over 80 IPOs will take place in Hong Kong in 2013 compared with 60 in 2012, and the total funds are expected to be raised will reach about 130 billion HK dollars (about 16.8 billion U.S. dollars) compared to 103 billion HK dollars this year.

Law also expects an increase in IPO activities for A-Shares next year as the introduction of new government policies within a short period of time in the second quarter in 2013 drives IPO activities for those companies benefiting from the measures.

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