The latest data released by the Shanghai Stock Exchange indicates that a total of 428 Chinese companies successfully completed their IPO’s in 2017 as of 22 December, raising a total of 225.572 billion yuan in funds.
A total of 211 companies listed on the main board of the Shanghai Stock Exchange, raising a total of 136.861 billion yuan, while 78 companies listed on the Shenzhen Stock Exchange SME board, raising 37.586 billion yuan.
A further 139 companies listed on the Shenzhen ChiNext board, raising a total of 51.125 trillion yuan.
From the start of the year until 22 December 374 companies applied to the China Securities Regulatory Commission for listing, with 155 companies seeking listing in Shanghai and 219 wanting IPOs in Shenzhen (52 companies for the SME board, 167 companies for the ChiNext Board).
While the securities regulator has quashed a record volume of IPO applications in 2017, it has also dramatically increased the pace of approvals, as part of efforts to streamline and standardise the IPO process and increase the role of direct financing in the Chinese economy.
CSRC recently said that it would “expand the vigour of support for high-tech enterprises and new economic sectors that satisfy state development strategies and possess core competitiveness in 2018.”
CSRC data indicates that since 2016 a total of 277 companies have listed in Shanghai, of which 223 were tech enterprises, accounting for 81% of the total, while 157 companies were strategic new industry companies, accounting for 57% of the total.
Of all the companies listed in Shanghai strategic new industry companies account for 29%, for an increase of 8 percentage points since 2013.