Newly listed companies raise $60.3 bln in 2015
China once again led the global IPO market with 372 IPOs raising $60.3 billion, amid divergent performance in the global market, a report released by EY showed on Monday.
According to the report, there were a total of 219 IPOs on the Chinese mainland's A-share market, raising 158.6 billion yuan ($24.46 billion) in 2015, an increase of 75 percent and 102 percent respectively, from 2014.
By sector, industrials and TMT (technology, media and telecom) ranked first and second by number of deals, representing 34 percent and 20 percent, respectively, of total IPOs, which is in line with government's top priorities of "Internet Plus" and "Made in China 2025."
IPO activity in the Hong Kong market in 2015 also witnessed a record at a five-year high by number of deals and funds raised, with a total of 121 IPOs in Hong Kong raising HK$261.4 billion, up 11 percent and 12 percent, respectively, from 2014. And the amount of funds raised in Taiwan's IPO market rose 44 percent year-on-year. The number of deals rose by 17 percent.
With the resumption of IPOs, the A-share market is now back on track for reform, Yang Wang, EY Greater China A share Leader, said in a press release.
According to Yang, the capital market may now continue to play its role in funding and driving the growth of emerging companies. The regulators will further optimize the system for new share issues and ensure a smooth transition to a registration-based regime, step by step.
The report also said the exceptional performance of the Hong Kong market in 2015 was underpinned by large enterprises from Chinese mainland. Of which, non-commercial bank financial institutions accounted for more than 60 percent of total funds raised by the top 10 IPOs.
The A-share market has experienced a V-turn. In the first half of 2015, the Shenzhen Stock Exchange topped the world in terms of the number of IPOs.
The Shanghai Stock Exchange ranked second globally by funds raised, amid full-speed IPO approval by regulators and a strong stock market.
