Chinese IPOs in the U.S. and Hong Kong are set to increase next year, analysts say

Published On Oct 28, 2024, 7:07 PM

Chinese Initial Public Offerings (IPOs) in the U.S. and Hong Kong are anticipated to rise next year, driven by improving conditions for listings and increasing investor optimism. Analysts suggest that after a stagnation due to regulatory scrutiny post-Didi's IPO, Chinese companies are once again seeking to list abroad. The easing of regulatory issues and high-profile listings, such as that of WeRide and Pony.ai, are expected to rejuvenate interest in IPOs. Factors like an expected reduction in interest rates and the resolution of certain geopolitical tensions are also expected to make public offerings more appealing to investors, particularly in the tech sector.

Stock Forecasts

The anticipated rebound in Chinese IPOs is likely to lead to increased investment in companies planning to enter these markets.

Increased investor engagement with Chinese IPOs may also favor existing tech companies that benefit from this renewed interested, such as ASML.

Related News

(Bloomberg) -- There’s a growing divide in the $530 billion semiconductor industry between the companies that are riding the artificial intelligence wave and those that aren’t. And looking at the early returns from this earnings season, that gulf could soon widen into an abyss.Most Read from BloombergA Broken Oil Pipeline Plunges South Sudan’s Capital Into ChaosDrug Decriminalization Spawns a Political Debacle for ProgressivesCities Look to AI to Flag Residents’ Trash and Recycling MistakesOne C

NVDA
ASML

Computer chip equipment maker ASML's deep cuts to its 2025 sales forecast sparked a sell-off in chip stocks on Tuesday over worries that global chip demand may be faltering. The weaker outlook could, instead, reflect some overcapacity at chip factories that had already stocked up on ASML's pricey tools during the pandemic and have become better at using them to produce a larger numbers of chips, analysts said. In results that the company inadvertently posted a day ahead of schedule, ASML said it expects 2025 total net sales of 30 billion-35 billion euros, near the bottom of its previous forecast.

AMSTERDAM (Reuters) -Computer chip equipment maker ASML on Tuesday reported weak bookings and cut 2025 sales forecasts in third quarter earnings published early on its website, sending its shares down 15% by 1500 GMT. "We expect our 2025 total net sales to grow to a range between 30-35 billion euros, which is the lower half of the range that we provided at our 2022 Investor Day," Chief Executive Christophe Fouquet said in a statement. However, the company's bookings came in at 2.6 billion euros, well below forecasts that had ranged between 4 billion euros and 6 billion euros.