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Survey: IPO scale to dip from last year's level
By Zhang Fengming |
January 4, 2011, Tuesday
|
Online Edition
Online Edition
INITIAL public offerings on the Chinese mainland are expected to recede this year from a record high in 2010 as mega-sized firms already got listed, an industry survey said today.
The funds raised through IPOs will drop to 400 billion yuan (US$60.6 billion) in Shanghai and Shenzhen this year, down from 2010's 478.3 billion yuan, said PricewaterhouseCoopers in a report today.
"China's rising economy and the listings of small and medium-sized companies will keep China's IPO market robust in 2011," said the accounting firm today.
As small and medium-sized companies are expected to be the main force for initial public offerings this year, the funds to be raised in aggregate this year will decrease, the firm predicted.
It said it forecasts 30 new listings on the main boards on the mainland and 290 new listings on the board for start-ups and small and medium-sized companies.
Feng Heping, a partner with the accounting firm, said China's campaign to improve its economic structure will also drive up the financing needs of small but innovative firms in the capital market.
"It could be difficult for small firms to obtain bank loans due to their small scale and higher risk," he said. "So, the capital market could be the main financing channel for them."
Manufacturing, retail, information technology and financial services are expected to be the main industries to get listed this year.
China's big-five state-owned banks already went public in Shanghai and Hong Kong. City commercial banks are forecast to follow the listing path this year.
China introduced its Nasdaq, the ChiNext, for start-ups in September 2009. It also has a board for small and medium-sized firms in Shenzhen. In 2010, 321 firms went public and raised 298.1 billion yuan in the two boards. It accounted for 62 percent of the funds raised for initial public offerings last year.
The funds raised through IPOs will drop to 400 billion yuan (US$60.6 billion) in Shanghai and Shenzhen this year, down from 2010's 478.3 billion yuan, said PricewaterhouseCoopers in a report today.
"China's rising economy and the listings of small and medium-sized companies will keep China's IPO market robust in 2011," said the accounting firm today.
As small and medium-sized companies are expected to be the main force for initial public offerings this year, the funds to be raised in aggregate this year will decrease, the firm predicted.
It said it forecasts 30 new listings on the main boards on the mainland and 290 new listings on the board for start-ups and small and medium-sized companies.
Feng Heping, a partner with the accounting firm, said China's campaign to improve its economic structure will also drive up the financing needs of small but innovative firms in the capital market.
"It could be difficult for small firms to obtain bank loans due to their small scale and higher risk," he said. "So, the capital market could be the main financing channel for them."
Manufacturing, retail, information technology and financial services are expected to be the main industries to get listed this year.
China's big-five state-owned banks already went public in Shanghai and Hong Kong. City commercial banks are forecast to follow the listing path this year.
China introduced its Nasdaq, the ChiNext, for start-ups in September 2009. It also has a board for small and medium-sized firms in Shenzhen. In 2010, 321 firms went public and raised 298.1 billion yuan in the two boards. It accounted for 62 percent of the funds raised for initial public offerings last year.
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