The Malaysian capital has put in an impressive performance in the IPO market this year. But talk of challenging Hong Kong is premature, says Jessica Seah 

For three years, Hong Kong led the world in initial public offerings (IPOs) and international law firms piled in to get a piece of the action. But the market started slowing down late last year and things have not picked up.

So far in 2012, the formerly number one Hong Kong Stock Exchange ranks only ninth in the world in terms of funds raised in IPOs, according to statistics from market analysts Dealogic.