Ernst & Young: The number of A-share IPOs and the amount of funds raised in the first half of the year doubled the world’s A-share IPOs in the second half of the year.Fly into the homes of ordinary people
Xinmin Evening News (Reporter Yang Shuo) Ernst & Young today released the “Mainland China and Hong Kong IPO Markets” report, reviewing and analyzing global and Greater China IPO activities in the first half of 2022 and looking forward to the market prospects in the second half of the year. The report pointed out that due to factors such as global economic uncertainty, geopolitics and the epidemic, the number of IPOs and the amount of funds raised in the first half of the world dropped sharply. A total of 630 companies went public globally, raising US$95.4 billion. Compared with the same period last year, the number of IPOs and the amount of funds raised fell by 46% and 58%, respectively. Mainland China and Hong Kong remain important regions for global IPO activity, accounting for 30% and 53% of global IPO volume and fundraising, respectively.
The Shanghai Stock Exchange ranks first in the world with US$32.8 billion in fundraising, accounting for 34% of the global total. The Shenzhen Stock Exchange leads the world in the number of IPOs, with a total of 81, accounting for 13% of the global total. The world‘s top 10 IPOs raised a total of 40 billion US dollars, and 3 of the top 10 IPOs were Chinese companies. Among them, China Mobile Co., Ltd. ranked second in the world with 8.157 billion US dollars in financing.
Ernst & Young pointed out that with the implementation of the registration system on the Science and Technology Innovation Board and the Growth Enterprise Market and the further improvement of the regulatory system, the A-share market has attracted the influx of many high-quality science and technology innovation enterprises. In the first half of 2022, the amount of funds raised on the Science and Technology Innovation Board exceeded the main board for the first time. The number of IPOs and the amount of funds raised accounted for 31% and 37% respectively. The active listing of hard technology companies represented by semiconductors and chips pushed up the amount of funds raised on the Science and Technology Innovation Board. The ChiNext ranks first in the number of IPOs, and innovative small and medium-sized enterprises in traditional industries are still the new force in A-shares.
Ernst & Young pointed out that with the recovery of the mainland economy and the introduction of more policy support by the China Securities Regulatory Commission for capital projects related to the epidemic, the willingness of companies to go public and raise funds has increased in the second half of the year. The comprehensive registration system is expected to be implemented within this year. The marketization of new share issuance, the breakout of new shares may be normalized, and the stricter delisting and the diversification of channels will further promote the formation of a benign market ecology. A-share IPOs are expected to accelerate in the second half of the year.
