Chinese companies raised the most this decade from initial public offerings in the first half of a year as Huatai Securities Co (華泰證券) and more than 170 other firms tapped the country’s financial markets.
Companies raised 215.3 billion yuan (US$31.8 billion) from IPOs, said Tong Daochi (童道馳), the China Securities Regulatory Commission’s (CSRC) director general of international affairs, at a conference in Shanghai. That is the highest this decade for China, Bloomberg said.
China, which is home to the worst-performing benchmark Asian stock index, may be the world’s biggest IPO market this year, with companies likely to raise 500 billion yuan in Shanghai and Shenzhen, PricewaterhouseCoopers said this month.
The tally doesn’t include Agricultural Bank of China Ltd’s (農業銀行) US$19.2 billion sale this month in Shanghai and Hong Kong.
“The rising interest in the small and medium board in Shenzhen and ChiNext definitely pushed the booming IPO market,” said Wesley Li, an analyst at research company ChinaVenture. “The regulator has also become more skillful in controlling the rhythm of approving new IPOs.”
Most of the IPOs in the first half of the year were from companies selling shares on the small and medium-sized board and the ChiNext startup board, both in Shenzhen, Tong said.
China’s stock market regulator is considering rule revisions that would make it easier for smaller Chinese companies to list in Hong Kong, Tong said.
The benchmark Shanghai Composite Index has fallen 23 percent this year on concerns government measures to control real-estate speculation and rising consumer prices will dampen economic growth.
China’s stocks rose for a third day yesterday as the outlook for increased investment in the clean energy industry and higher domestic consumption overshadowed concern the government won’t relax its policy tightening measures.
The Shanghai Composite Index, which tracks the biggest Chinese stock exchanges, added 0.3 percent to 2,535.39 at the 3pm close. The measure has gained 4.6 percent in the past three days.
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