A total of 35 Shenzhen enterprises have listed on the Shanghai and Shenzhen stock exchanges since the start of this year, raising funds totaling 41.6 billion yuan (US$5.96 billion), up 40.53% year on year, Shenzhen Economic Daily reported yesterday.
China’s A-share primary market continues its robust momentum this year with funds raised via initial public offerings (IPOs) hitting a record high.
Shenzhen ranked third in the country after Beijing and Shanghai in terms of the number of IPOs and the amount of funds raised in major Chinese cities.
It is estimated that over 20 Shenzhen companies have received listing approval and are yet to go public.
Since this year, 415 companies newly listed on the A-share market, including new shares to be listed within the year, have raised 576.5 billion yuan, an increase of 6.25% over the previous year, according to data from financial information provider Tonghuashun.
China Mobile was the largest single IPO in the A-share market this year, raising 51.98 billion yuan.
The newly listed firms mainly come from sectors such as industry and materials, information technology and telecommunications services, health care and pharmaceuticals, as well as the consumer industry. Those from the emerging industries account for over 80%.
The number of IPOs and the amount of funds raised on China’s Nasdaq-style sci-tech innovation board (also known as the STAR market on the Shanghai Stock Exchange) and the tech-heavy ChiNext market on the Shenzhen Stock Exchange accounted for the lion’s share of the country’s total in 2022.
Jean Sun, firmwide corporate services partner of PwC China, said that 70% of the funds raised in the A-share market this year are from the STAR market and ChiNext that adopt registration-based listing system, which fully reflects the capital market’s support for sci-tech firms and emerging industries.