One of the sure signs of an ageing bull market is when follow-on equity deals start picking up steam as sellers try to time the top of the market.
Just such a pattern started to take shape in Asia at the beginning of 2018 as issuance volumes rose.
The region’s equity markets appeared to be heading for a golden period of strong secondary market issuance matched by solid momentum-driven demand. A win-win situation for both the buy and sell side.
Valuations were high. But in Hong Kong at least, equity strategists argued they would be buttressed by accelerating Southbound flows.