The impressive growth in IPO activities is invigorating the mindset of global investors toward China after more than a little prolonged slow deal-making activity and halted exits regarding value. Fundraising to $18.2bn of IPO listings year to date October has Hong Kong firmly on track to be the largest IPO market in the world by 2025, as it has finally started to clear pathways for private equity firms to exit old investments in China. The rebound from the low valuation on Equities (in particular Hong Kong) and surge in value will provide investors even more energy to dip back into Chinese assets (specifically investment managers eager to re-deploy capital at more attractive valuations) (the Hang Seng index had increased +28% for year to date 2023, while the S&P 500 was only up just above +13%). Frontline private equity investors we spoke to share the simple thinking here has shifted towards possible considerations of much cheaper values, a confidence rebound of consumers and strong domestic brands being built, having resulted in a rare chance to “grow at a discount”. Global players like L Catterton and PAG find that the deceleration of competition in the really big PPO, consumption driven companies, is really even a more favorable option now than before. Leaving aside the challenging conditions on exits in the mainland (which remain impediment in the process from getting it further inside yet), IPO resuming on HK and trading process developments should help provide fund managers an exit eventually, even with an aspiring 300 IPO backlog currently behind the process (which inevitably makes things harder). Most encouragingly, there is likely just grounded optimism expressed. If the Government of Hong Kong can respond to continued misaligned between key cross market policies and procedures to respond to demand, fund managers I have respect for said any policy studying on establishing a regulatory authority able to embrace improving the workings of competing characteristics broadly observed in HK, was signalling what they were factoring in, impacting to “reformulate” their investment mindset downward toward China.