The number of A-share IPOs and the amount of funds raised in 2021 both reach new highs-new stock listings run out of acceleration
Say goodbye to the old and welcome the new. Looking at the performance of the A-share market for the whole year of 2021, the IPO report card is eye-catching: the number of new shares issuance and listing has increased significantly, the scale of financing has grown steadily, and equity financing has achieved remarkable results in supporting the real economy.
Experts believe that with the comprehensive advancement of the registration system reform, the multi-level capital market system will be further improved. A-share IPOs are expected to accelerate in 2022, and more high-quality companies of different types and stages of development will use the "running water" of direct financing to escape Development "acceleration".
Reforms continue to advance——
The pace of IPOs is accelerating
With the steady progress of the registration system reform and the establishment of the Beijing Stock Exchange, in 2021, the A-share IPO camp will continue to expand and the scale of financing will increase significantly.
According to statistics from Flush iFinD, as of December 31, 2021, a total of 524 new shares of A-shares have been listed, and the total amount of funds actually raised for the initial issuance reached 546.6 billion yuan, and both the number and the amount reached new highs in recent years.
"The substantial increase in the scale of IPO financing during the year is inseparable from the acceleration of my country's capital market reform. The Beijing Stock Exchange established and simultaneously piloted the registration system, and the Science and Technology Innovation Board and the Growth Enterprise Market accelerated the reform of the registration system, which broadened corporate financing channels and improved financing efficiency. , More companies can go to A-share listing and financing as soon as possible, and grow rapidly." said Tian Lihui, Dean of the Institute of Financial Development of Nankai University.
While the number of new shares issuance hit a record high, the capital market ecology is also undergoing changes. Reforms such as the new share price formation mechanism, the survival of the fittest mechanism, and the normalized delisting mechanism have all achieved positive results.
The myth of "new stocks undefeated" was broken.
"The price of new shares can better reflect the actual value of the company, and the efficiency of price discovery has been significantly improved. Companies with different industries and different qualities are facing greater valuation differentiation, and the issuance price is approaching fundamentals. After the stock is listed, the exchange rate will be more abundant, and the discovery will be broken. There has been an increase.” said Li Zhan, chief economist of the Research Department of China Merchants Fund.
The market survival of the fittest mechanism has been gradually improved, and the support for value investment has become more prominent.
According to Li Zhan's analysis, the registration system has effectively changed the expectation that the supply of new stocks in the past market is in short supply. The phenomenon of "new speculation" and "speculation gap" in the market is decreasing, the "shell value" of stocks is gradually decreasing, and high-quality company stocks are more popular.
The construction of a normalized delisting system has continued to advance.
In 2021, more than 20 A-share companies have been delisted, an increase from previous years.
At the same time, delisting channels have gradually diversified, with various delisting situations such as transfer delisting, forced delisting, and merger and reorganization delisting, and a benign market ecology with both ins and outs has further formed.
It is worth mentioning that with the continuous advancement of the deepening reform of the capital market, the return of red-chip companies has become a major attraction in the A-share market.
In August 2021, China Telecom landed on A shares. Recently, China Mobile announced the results of the initial public offering of A shares. The number of shares issued was 845.7 million shares, and the total amount of funds raised is 48.695 billion yuan.
"The return of China Mobile and China Telecom to A shares is an important manifestation of companies' optimism about the development of my country's capital market. With the continuous improvement of the policy environment, the return of red-chip companies will become a major trend." Tian Lihui said.
The system is getting better and better——
Sci-tech enterprises have benefited significantly
From the perspective of fundraising and investment, emerging industries such as new energy, new materials, medical biology, and high-end equipment manufacturing will become hotspots for new stocks in 2021. The capital market's role in supporting innovation and entrepreneurship is prominent, and funds, technologies, and talents continue to flow into the field of innovation. .
"The development of the Science and Technology Innovation Board, ChiNext, and Beijing Stock Exchange have been misplaced, and the pattern of moderate competition has provided more different types of innovative and entrepreneurial companies with listing options." Li Zhan said.
According to statistics from Flush Shun iFinD, as of December 31, 2021, the number of IPOs on the ChiNext Board was the largest, reaching 199, with a financing scale of approximately 147.5 billion yuan; 162 new stocks were listed on the Sci-tech Innovation Board, with a financing scale of approximately 202.9 billion yuan; the two IPOs The total IPO fundraising scale is about 350.4 billion yuan, accounting for 64% of the total IPO fundraising in 2021.
The Sci-tech Innovation Board continues to play its role as a reform "experimental field", and actively encourages enterprises to use innovative systems to raise funds in an orderly manner and become better and stronger.
The relevant person in charge of the Shanghai Stock Exchange told reporters that the Sci-tech Innovation Board has optimized the refinancing system arrangements such as the issuance conditions, small fast financing limits, and the validity period of approval documents to further broaden the financing channels for listed companies, and has boosted "hard technology" companies such as China Micro and Microelectronics and Shenzhou Cell. Refinancing breaks through the 30% supplementary liquidity ratio limit. At present, 11 companies have completed refinancing issuance, raising a total of 25.4 billion yuan, and 11 companies are testing the water for small and rapid financing.
The vitality of the ChiNext market has been continuously stimulated, and the quality of listed companies has been further improved.
According to the person in charge of the Shenzhen Stock Exchange, at present, nearly 50% of the listed companies in the next-generation information technology, biomedicine, new materials, and high-end equipment industries on the ChiNext have cultivated a batch of core technologies and innovation capabilities such as CATL and Mindray Medical. High-quality enterprises have obvious industrial cluster effects and become an important platform for service innovation-driven development strategies.
"The development of the Science and Technology Innovation Board, the ChiNext Board, the Beijing Stock Exchange and the reform of the registration system have broadened the financing channels for technology-based, innovative and growth-oriented companies. The listing of these companies has released the liquidity of the primary market and indirectly supported other start-ups. The development of finance is of great significance to the formation of a virtuous circle of financial support for technological development.” Li Zhan said.
While the multi-level capital market system provides enterprises with a full range of investment and financing services, they must also be alert to conceptual speculation.
With the development of new-generation information technologies such as big data and artificial intelligence, more and more new technology concepts are favored by the capital market. Among them, there are many bubbles. Subject speculation will further promote the high-quality development of the real economy.
The ecology is gradually optimized——
Business expectations are clearer
The Central Economic Work Conference in 2021 clearly proposed that the registration system for stock issuance shall be fully implemented.
Recently, the Party Committee of the China Securities Regulatory Commission, when conveying and studying the spirit of the Central Economic Work Conference, proposed to fully deepen the reform and opening up of the capital market with the reform of the market-wide registration system as a guide.
Looking forward to 2022, the market predicts that with the comprehensive advancement of the registration system reform, the number of IPOs in the A-share market will continue to grow, and the proportion of direct financing is expected to continue to increase.
"Judging from the reform pilots in the past three years, the registration system has performed well. It has been proven to be an effective system that is conducive to the prosperity and development of the capital market. Further promotion is necessary." Li Zhan said that the registration system is fully implemented. , Scientifically and rationally maintaining the normalization of new share issuance will bring more financing resources and help more companies solve financing difficulties with the aid of the A-share market.
Deloitte China Capital Markets Service Department predicts that, supported by the rising number of new shares on the Science and Technology Innovation Board, ChiNext and Beijing Stock Exchange, the A-share IPO market will continue to grow in 2022, and most of the new shares will come from small and medium-sized manufacturing and technology companies.
“In recent years, China’s capital market has undergone a number of major reforms. We are optimistic about the prospects of the IPO market in 2022 and the next few years. The market looks forward to the full implementation of the IPO registration system, which will create a more favorable environment for companies to The domestic capital market can more effectively raise funds to support business development.” said Tong Chuanjiang, partner in charge of A-share listing business of Deloitte China Capital Market Service Department.
In order to support more high-quality innovative and entrepreneurial enterprises to obtain financing support, Li Zhan suggested that the full implementation of the registration system should be accelerated, and more diversified listing standards should be set, especially for the new generation of information technology industry, biological industry, new material industry, and new energy industry. In such strategic emerging industries, it is possible to set listing standards with growth as the core to comply with the development laws and characteristics of science and technology enterprises, and to enhance market tolerance and pertinence.
Of course, with the increase in the number of newly listed companies, the pressure on A-share liquidity cannot be ignored. To support the larger-scale issuance of A-share IPOs, we still need to rely on the further reform and opening up of the capital market.
Tian Lihui suggested that in the future, we should continue to promote high-level reform and opening up of the capital market, continuously improve market infrastructure construction, and promote market ecology to become standardized and transparent, so as to further attract domestic and foreign investors, absorb more medium and long-term funds for the A-share market, and better Promote a high-level cycle of technology, capital and industry.
(Economic Daily reporter Li Hualin)