China IPO hopefuls surge to 3-year high encouraged by market reforms
SHANGHAI The number of companies seeking to go public in China has jumped to about 580, a three-year high, encouraged by market reforms and a bumper year for equity financing in 2019.
It includes 420 Chinese firms awaiting approval to list in Shanghai or Shenzhen, official data shows, while another 161 have applied to Shanghai's six-month-old Star Market, China's answer to Nasdaq.
The combined number is double levels a year earlier, and the most since 2016, when there was a long queue of IPO hopefuls after officials shut down entry into the market for four months following a string of boom-and-bust listings.
"I expect China's IPO activity will continue to be very active next year, thanks to greater inclusiveness towards IPOs, and additional capital inflows," said assurance partner Yang Wang at accounting firm EY.
The good times for China IPOs contrast with weak markets for listings globally, with sentiment hit by trade tension and some high-profile IPO flops. Worldwide, the number of IPOs tumbled 19 per cent this year and fund raising shrank 4 per cent, EY said.
Also helping has been a climb of 30 per cent for China's benchmark CSI 300 Index, one of the world's best-performing major indexes this year due in part to foreign inflows after Chinese stocks were included in global benchmarks. - REUTERS