IPO activity strong in H1 as economic growth rebounds

Updated 2017-06-27 11:04:38 Global Times

China's IPO activity had strong momentum in the first half of 2017 with a significant increase in new listings on the A-share market, thanks to a rebound in economic growth in the period, according to a report from global consulting firm EY released on Monday.

According to the EY report, the first-half total for the A-share market will be 246 IPOs with total funds raised of 125.6 billion yuan (.37 billion), up 303 percent and 336 percent year-on-year respectively.

The increased in listings has reduced the IPO backlog for approval at the China Securities Regulatory Commission (CSRC) by 20 percent from the end of 2016 to 585 at present, according to the report.

However, the capital market was on a downward trend in the second quarter and IPOs experienced a slight slowdown, which might have helped stabilize the market, Shen Yan, an EY assurance service partner, said at the release event.

"Proceeds of IPOs fell 20 percent compared with the first quarter and the pace of IPO approvals also declined, which helped stabilize the market to a certain extent," Shen said.

The slowdown also came as regulators tightened IPO rules, especially for "backdoor listings." There were only four such IPOs in the A-share market in the first half of 2017, down from 12 in the same period last year, according to the report.

In terms of sectors, the report said that both the number of IPOs and funds raised from industrial enterprises ranked first. Other active industries also included technology, media and telecommunications, materials, consumer products and retail and healthcare. Money raised from IPOs in the financial industry fell in the absence of large banks being listed.

The stock market in Hong Kong also saw significant growth in the first half of the year, with 69 companies going public and raising HK.8 billion (.9 billion). IPO volume and proceeds increased by 82 percent and 24 percent respectively compared with last year, the report noted.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58July 17 2018 04:16:55

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16July 17 2018 04:16:55

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18July 17 2018 04:16:55

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords