Accounting firm Deloitte on Friday said it had slashed its projections for Hong Kong's initial public offering (IPO) fundraising by up to 40 percent.

Deloitte now expects to see 80 new listings to generate between HK$60 billion and HK$80 billion of proceeds, down from its previous estimate of HK$100 billion.

The Southern Region Managing Partner of Deloitte China, Edward Au, attributed the downgrade in expectations to the uncertainty surrounding the US interest rate cuts.

“The Federal Reserve’s interest rate cut timing will affect the flow of funds into Hong Kong, because I think definitely investors would wait, regarding the risk and return,” he explained.

“They actually want to invest in more tangible [assets], and companies with concrete profits or paths to profit.”

Despite the lowering of Deloitte's forecast, Au expected that Hong Kong would be among the top five global IPO venues in 2024.

Ultimately, Au was optimistic that more mainland companies would list in Hong Kong in the second half of the year, as their valuations would rise if the US Federal Reserve reduced its rates, as some have projected, resulting in an appreciation of the renminbi.

Another accountancy giant, KPMG, which released its revised projections on Tuesday, expected that IPO fundraising in Hong Kong would generate at most HK$60 billion in revenue in 2024.