China News Agency, Beijing, June 23 (Reporter Yan Xiaohong) Ernst & Young released the report "No fear of the new crown epidemic, IPO activity in mainland China and Hong Kong keeps growing": Compared with other regions, mainland China and Hong Kong are less affected by the new crown pneumonia epidemic , IPO (Initial Public Offering) activity continued to increase compared with the same period last year, accounting for 43% and 46% of global IPOs and funding.
Analysis of the report said that due to the impact of the new coronary pneumonia epidemic, global IPO activity slowed down in the first half of 2020, with a total of 412 companies listed on the global market, raising US$66.7 billion. Compared with the same period of last year, the number of IPOs and the amount of funding decreased by 20% and 12% respectively.
He Zhaofeng, partner in charge of listing services at EY Greater China, said that in the second quarter of this year, IPO activities in Mainland China and Hong Kong returned to the level before the outbreak of the new coronary pneumonia. The main reason is that the epidemic has been brought under control in mainland China, and some high-profile companies have conducted secondary listings in Hong Kong. As the central government continues to introduce economic stimulus measures, the People’s Bank of China will continue to provide liquidity support to the market, which will help accelerate economic recovery and boost the prospects for the IPO market in the second half of 2020.
In the first half of 2020, a total of 120 companies are expected to be listed on the A-share market, raising RMB 139.9 billion. The number of IPOs and the amount of funds raised increased by 88% and 132% year-on-year respectively.
The report pointed out that the IPO activity in the second half of the year will be affected by many factors. The global epidemic and the economic and trade situation are highly uncertain and the economic growth rate is under pressure. On the other hand, the reform of the GEM registration system has accelerated and the establishment of a multi-level capital market has Helping innovative SMEs go public. The development of new infrastructure will have a profound impact on the capital market, and the dividend of technological progress carried by hard technology is the key to driving China's economic growth.
As the number of IPO queuing companies remains high, Ernst & Young expects that A-share IPO activity will remain active in the second half of 2020, especially the number of queuing companies on the GEM will take the first place, and SMEs with innovative elements will be the main IPOs in the second half of the year. (Finish)