By Lillian Liu (China Daily)
Updated: 2007-07-05 08:48

Companies may raise at least HK$180 billion(US$23 billion) here this year, according to calculations by China Daily, well shy of last year's HK$333 billion, yet still robust as medium-sized companies show interest in Hong Kong listings.

A total of 32 initial public offerings (IPOs) were launched in the first half of this year, raising HK$102.5 billion.

Estimates for the second half of the year were calculated by adding up the IPO sizes of all candidates with reported plans to list this year.

"Hong Kong's IPO market remains bullish this year," said Kwan Pak-leung, a director of CASH Financial Services Group. "You cannot merely compare it to last year and conclude that the market is cooling down. Last year saw so many giant IPOs, such as the Industrial and Commercial Bank of China (ICBC)."

In 2006, the ICBC and Bank of China's IPOs, which totaled HK$235 billion, helped Hong Kong surpass New York as the world's second-largest IPO market after London.

Yet thus far this year it is medium-sized private companies that have grabbed the spotlight on the IPO market and the trend will continue in the second half, said Kwan.

"It is worth noticing that although some State-owned companies gave up the idea floating shares in Hong Kong and turned to the A-share market instead, Hong Kong's stock market is still attractive to those medium and small private-owned enterprises," he said.

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T his month alone has seen 12 enterprises from a wide range of industries, including electrical companies, telecommunications and retailers, float shares in Hong Kong, raising HK$31.8 billion.

Included in the companies are tissue and household paper maker Vinda Group, sports wear manufacturer ANTA, retail chain Jiangsu Times and conglomerate Fosun Group.

But the mainland is likely to become the world's largest fund-raising market this year, an analyst said.

"The authorities are encouraging enterprises to list in the Shanghai and Shenzhen stock markets in a bid to let more mainland investors to share a slice of the successful economy," said Hu Wenwei, senior stock market analyst from Taifook Securities.

West Mining, a State-owned producer of non-ferrous metals, earlier scrapped its Hong Kong listing plan and switched to the A-share market.

Several Hong Kong-listed giants such as PetroChina and China Construction Bank have also announced plans to float shares on the mainland.