PwC report predicts home floats of US-listed companies

Chinese mainland innovative technology companies that are listed in the United States will likely move back to Hong Kong or Chinese mainland capital markets in the second half of 2022, fueled by several factors like domestic policy incentives and to avoid potential geopolitical uncertainties, according to a new report from global consultancy PwC.

With a package of supportive measures to stimulate economic growth and the improvement of a registration-based IPO system, the domestic capital market is expected to continue to grow and become a highlight across the globe despite current economic headwinds, said Wilson Chow, a PwC Global TMT industry leader.

"In the first half, some US-listed Chinese mainland companies have sought a secondary listing on the Hong Kong stock exchange," Chow said. He also noted that the Chinese mainland and Hong Kong bourses will become the preferred options for technology, media and telecommunications enterprises from the Chinese mainland seeking a primary listing.