According to the latest report by Deloitte China, as of September 30, the Hong Kong Stock Exchange (HKEX) will see 98 IPOs raising a total of 124.8 billion HK dollars. Compared with the same period last year, the number of IPOs will be down by 38 percent and the total funds raised will fall by 49 percent.

Hong Kong has experienced anti-government protests for nearly four months that have led to deep social divide and unrest. As business environment worsens, the HKEX has seen a sharp plunge in the number of IPOs and the amount raised, with only one IPO in August. 

Officials repeatedly warned the current situations has weighted on the city's economy, pillar sectors and might cause a recession.

Read more: Hong Kong shares slump alongside other Asian stocks amid city-wide strikes

Edward Au, co-leader of the national public offering group of Deloitte China, said the listing plans of larger issuers, which require stable markets for book-building and deal completion, were deterred due to uncertainties in the Sino-U.S. trade war, Brexit and other geopolitical factors.

Stock market rebounding as protests restrained 

However, the financial hub still maintains its advantages despite multiple uncertain macroeconomic factors and market turbulence. Hong Kong is expected to rank third in the global initial public offering fundraising for the first three quarters, while the New York Stock Exchange and NASDAQ are expected to take the first two places, due to larger technology offerings, Deloitte said.

Despite the slump in the number of IPOs and the amount raised in the first nine months, the report said that IPOs on the Hong Kong stock market are rebounding, helping the financial hub to foster its position, which is a sign of confidence in the Hong Kong IPO market, Global Times cited from analysts.

Deloitte expects enterprises that list in Hong Kong could raise at least 180 billion Hong Kong dollars (22.96 billion U.S. dollars) by the end of 2019 if the capital market stabilizes after October or even warms up. 

The return of super-large-cap listings including Budweiser Brewing Co APAC – Anheuser-Busch InBev's Asian unit, and Alibaba Group Holding Ltd. will uphold HKEX's fundraising. Logistics real estate developer ESR Cayman also announced plan in mid September to revive IPO that was shelved over the summer.

Although a weak market performance and unrest have hit Hong Kong's IPO performance hard, "a relatively high financing volume can still be achieved if more listings materialized during the third and fourth quarter," Global Times quoted Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co.

"The report is a boon to market confidence," Yang added.