IPO market downturn caused by int’l economy  

專業機構:國際環境影響中國上半年IPO市場略低迷

普華勇道和安永3日同時在上海發布2012年上半年全球IPO(首次公開募股)市場報告。這兩家審計機構均認為，受國際經濟大環境影響，上半年中國的IPO市場表現略顯低迷，但下半年將重現活躍

Shanghai (CNS) -- Price Waterhouse Coopers (PwC) and Ernst & Young (EY) said that China's IPO market downturn has been caused by the global economy but will revive in the second half of the year.

The two accounting firms released their global initial public offering (IPO) market reports for the first half of the year on Tuesday.

The Shanghai and Shenzhen stock markets dealt with 105 IPOs in the first half, 38 percent fewer year on year; the total funds amounted to 77.5 billion yuan (US$12.2 billion), 56 percent less than the same period last year, the PwC report said. Hong Kong saw only 32 firms go public during the same term with total funds of 30.6 billion Hong Kong dollars (US$3.95 billion).

Uncertainty in the global economy has influenced the confidence of the capital market and delayed the IPO schedules of most qualified companies, yet PwC holds a positive view of the Chinese and global market in the second half of the year, said Frank Lyn, PwC China Markets Leader.

PwC also predicted that the number of IPOs on the Shanghai and Shenzhen stock markets will reach 200 to 250, and total financing will top 200 to 250 billion yuan.

The EY report mostly echoed PwC's analysis. Declines of both IPOs and financing in the Hong Kong, Shenzhen and Shanghai stock exchanges resulted from global economic recession and the European debt crisis, said EY Partner Cheekong Lai.

More than 100 companies have transferred ownership and are about to go public, while issuers and investors are more cautious in an uncertain market, claimed EY partner Yuan Yongmin. The second half will see looser capital, leading to an improving domestic stock market and more active IPOs, he said.