Clogged pipeline: Many Hong Kong IPO hopefuls near application expiration

A large number of mainland Chinese companies hoping to list shares on the Hong Kong stock exchange are anxiously waiting for a nod from the mainland securities regulator, with many now at risk of having their listing applications lapse.More than 430 companies were currently waiting in the initial public offering (IPO) pipeline, according to data from bourse operator Hong Kong Exchanges and Clearing (HKEX). More than 30, including mainland supermarket chain Qiandama and EVE Energy, a mainland-listed lithium battery maker with a market capitalisation above 140 billion yuan (US$20.6 billion), faced the six-month expiration of their applications within the next two weeks, the data showed.The backlog in the first half of the year was the most severe since March 31, 2023, when a mechanism was put in place that requires approval from the China Securities Regulatory Commission (CSRC) before HKEX can convene a listing hearing, according to Roy Lo, managing partner of accounting and consulting firm SW Hong Kong.