China News Service, Shanghai, April 1 (Reporter Jiang Yu) Deloitte China Capital Markets Service released an analysis and outlook report on the performance of the IPO market in mainland China and Hong Kong in the first quarter of 2022 on April 1.
According to the report, based on the amount of financing in the first quarter of 2022, the Shanghai Stock Exchange has become the world's largest listing venue for new shares, and the Shenzhen Stock Exchange has ranked third.
The Korea Stock Exchange, Saudi Arabian Stock Exchange and Nasdaq ranked second, fourth and fifth respectively.
In the first three months of 2022 as of March 31, a total of 85 new shares were listed on the Beijing, Shanghai and Shenzhen stock exchanges, raising 179.9 billion yuan (RMB, the same below).
Compared with the first quarter of 2021, 100 new shares were listed in Shanghai and Shenzhen, raising 76.1 billion yuan.
Although the number of IPOs fell by 15%, the amount of financing in the overall IPO market in mainland China in the first quarter of 2022 increased significantly by 1.36 times due to the return of a telecommunications company to the listing for a very large-scale financing.
Most of the financing amount, that is, 116.6 billion yuan raised by 37 new shares, came from the Shanghai market, while the Shenzhen market recorded the largest number of new shares, that is, 41 new shares, raising 62.1 billion yuan.
In addition, the Beijing Stock Exchange has 7 new shares to raise 1.2 billion yuan.
Hu Ke, Deloitte China Audit and Assurance Partner, said: "Although the A-share IPO market was also affected by some major macroeconomic and geopolitical events in the first quarter, the number of IPOs decreased, but in terms of financing amount, the Shanghai Stock Exchange and The Shenzhen Stock Exchange remains the world's largest and third largest listing destination, respectively, showing that China's A-share IPO market performed well in the first quarter of 2022."
In Hong Kong, in the first quarter of 2022, 15 new shares were listed on the Hong Kong IPO market, raising HK$13.6 billion, a 90% drop from the HK$132.8 billion raised in the same period in 2021, and the number of new shares decreased by 53% from 32.
The report predicts that, in terms of the number of new shares, the Shanghai Science and Technology Innovation Board, ChiNext and Beijing Stock Exchange will continue to be the growth drivers for the development of the IPO market in mainland China in 2022.
Hu Ke believes that the full implementation of the registration system will help to further expand the overall market in mainland China. It is expected that more large-scale financing projects with each financing of 1 billion to 5 billion yuan will be listed in 2022.