China's A-share IPO Fundraising to Reach New High in 2021- PingWest

China's A-share IPO Fundraising to Reach New High in 2021- PingWest

China's A-share IPO Fundraising to Reach New High in 2021

12 hours ago

Beijing (PingWest)—A-share IPOs in China are expected to reach a 10-year high in 2021, Chinese state-owned media China Daily reported, citing PwC's announcement.

The accounting firm forecast that the number of IPOs in China this year will range between 430 and 490, with the total funds raised hitting between 450 and 480 billion yuan ($70-74 billion).

"The new pattern of 'dual circulation', the strategic opportunity of the 14th Five-Year Plan, and the full implementation of the registration system all help A-share IPOs maintain good momentum," said Thomas Leung, markets leader of PwC China.

Last year, China's A-share market ushered in the listing of 395 new stocks, raising a total of 471.9 billion yuan, an increase of 97% and 86% respectively.

Meanwhile, the Nasdaq-like STAR Market was ranked first among all boards in China's A-share market, raising some 226.6 billion yuan last year. Of the top 10 IPOs, the STAR board accounted for seven. The firm expects the STAR Market to have 150 to 170 IPOs and 200 to 210 billion yuan in funds raised this year.

China's main stock market index closed at a 13-year high on Tuesday. The CSI 300 index, which tracks the largest shares listed in Shanghai and Shenzhen, climbed 1.9% to 5,368.50, its highest close since Jan. 18, 2008.

The economic recovery and the country’s ability to contain the coronavirus have contributed to the growth of the stock market. However, investors are more encouraged by the rapid reforms underway that are making it easier for companies to raise capital and global money managers to deploy capital.

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