Bonanza of IPOs in mainland
By Zhang Fengming |
July 6, 2010, Tuesday
|
Print Edition
Print Edition
THE Chinese mainland is set to be the world's biggest initial public offering market this year as funds raised via IPOs are expected to top 500 billion yuan (US$74 billion) and the number of new listings may reach 300, according to a PricewaterhouseCoopers report.
The accounting firm raised its mainland IPO forecast from a previous projection of 320 billion yuan as it remains optimistic about market conditions for the rest of the year. It based its optimism on the huge IPOs that will be debuting on the mainland, including the Agricultural Bank of China, the return of red chips - Hong Kong-listed companies with main business on the mainland - and the possible start of an international board.
It said there may well be 300 new listings, with 25 in Shanghai and 275 on the Shenzhen small- and-medium enterprise board and ChiNext viewed as China's Nasdaq.
This would lift the mainland to become the top spot in the global IPO market by both the number of new listings and funds raised, PwC said.
"The China IPO market, especially in Shenzhen, has picked up significantly in the first half of the year despite the uncertainties over a global recovery and the euro debt crisis impact causing greater market volatility," said Frank Lyn, a PwC partner leading the firm in China.
So far there have been 176 IPOs in the first half of this year compared to no listings in the same period last year in Shanghai and Shenzhen. There were 212.7 billion yuan raised in IPO funds between January and June, more than 187.9 billion yuan netted in the whole of 2009.
"Unless some negative factors emerge, the IPO markets in Shanghai and Shenzhen will maintain the momentum and are likely to reach historical highs this year," said Charles Feng, a PwC partner. ABC is set to debut in Shanghai and Hong Kong on July 15 and could be the world's largest IPO because the Beijing-based bank may net US$23.1 billion to surpass the Industrial and Commercial Bank of China, the previous record holder.
The accounting firm raised its mainland IPO forecast from a previous projection of 320 billion yuan as it remains optimistic about market conditions for the rest of the year. It based its optimism on the huge IPOs that will be debuting on the mainland, including the Agricultural Bank of China, the return of red chips - Hong Kong-listed companies with main business on the mainland - and the possible start of an international board.
It said there may well be 300 new listings, with 25 in Shanghai and 275 on the Shenzhen small- and-medium enterprise board and ChiNext viewed as China's Nasdaq.
This would lift the mainland to become the top spot in the global IPO market by both the number of new listings and funds raised, PwC said.
"The China IPO market, especially in Shenzhen, has picked up significantly in the first half of the year despite the uncertainties over a global recovery and the euro debt crisis impact causing greater market volatility," said Frank Lyn, a PwC partner leading the firm in China.
So far there have been 176 IPOs in the first half of this year compared to no listings in the same period last year in Shanghai and Shenzhen. There were 212.7 billion yuan raised in IPO funds between January and June, more than 187.9 billion yuan netted in the whole of 2009.
"Unless some negative factors emerge, the IPO markets in Shanghai and Shenzhen will maintain the momentum and are likely to reach historical highs this year," said Charles Feng, a PwC partner. ABC is set to debut in Shanghai and Hong Kong on July 15 and could be the world's largest IPO because the Beijing-based bank may net US$23.1 billion to surpass the Industrial and Commercial Bank of China, the previous record holder.
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