IPO Financing by Chinese Enterprises Drops over 20% YoY in First Half of 2019


Funds raised by Chinese enterprises via initial public offerings (IPO’s) saw a sizeable decline in the first half of 2019.

In the first half 2019 a total of 143 Chinese enterprises successfully completed IPO’s on the A-share, Hong Kong or US markets according a report released by China Venture Investment Consulting (投中研究院) on 1 August.

These IPO’s raised 127 billion yuan in total, for a decline of 20.03% compared to the first half of 2018 and 51.23% compared to the preceding half.

A-share IPO’s saw a slight increase, with 64 Chinese enterprises listing on the A-share market to raise 60.33 billion yuan, for an increase of 32.53% compared to the preceding period.

The number of Hong Kong listings by Chinese enterprises saw a modest decline in the first half, falling to 63 IPO’s to raise 55.825 billion yuan.

16 Chinese enterprises listed in the US in the first half of 2019 to raise 10.894 billion yuan in total.

Most of these enterprises hailed from the financial sector, while Luckin Coffee’s 4.207 billion yuan IPO accounted for nearly 40% of funds raised by Chinese enterprises stateside.

Ningxia Baofeng Energy’s domestic listing was the largest IPO by a Chinese enterprise in the first half, raising 8.155 billion yuan.

Shenwan Hongyuan, which staged an A-share listing, and Hansoh Pharma, which listed in Hong Kong, were the second and third largest IPO’s, both raising over 6 billion yuan each.