Big Guns But No Bright Lights

Even if it doesn't get to host the IPO of Saudi oil giant Aramco, potentially the biggest float of all time, Hong Kong should still be able to maintain its billing as the world's No. 1 venue for share sales next year. But with limited tech deals on the horizon, and most in the listing queue rather staid Chinese state-owned enterprises, investors shouldn't expect too much excitement.

Hong Kong, it seems, just isn't a magnet for sexy, new-economy stocks. Part of it is because the city doesn't allow dual-class ownership structures, one reason why Alibaba Group Holding Ltd. plumped for New York. And for companies below a certain size, Hong Kong Exchanges & Clearing Ltd. requires evidence of at least a three-year track record, which some tech firms would find hard to fulfill. A thriving institutional investor base that understands the tech sector also helps New York, which continues to draw Chinese new-economy stars like ZTO Express (Cayman) Inc., a delivery service that gets much of its business from Alibaba.