A-share IPO Funding Rises over 40% Since Start of 2022

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Funding via initial public offerings (IPO’s) on China’s A-share market has surged since the start of 2022.

According to data from Wind the period from January to July saw a total of 205 IPO’s on China’s A-share market, raising 350.4 billion yuan in funds, for an increase of 42% compared to the figure of 246.4 billion yuan for the same period last year.

Wind data further indicates that the first seven months of 2022 saw a total of 572 billion yuan in fund-raising for refinancing.

65 IPO’s were on China’s Science and Technology Innovation Board (STAR), raising 136.1 billion yuan, while 77 IPI’s were on the Growth Enterprise Market (GEM) board, raising around 97.8 billion yuan in funds.

The main boards of the Shanghai and Shenzhen bourses collectively saw 38 IPO’s that raised 112.1 billion yuan in funds, while the newly launched Beijing Stock Exchange saw 25 IPO’s, raising 4.2 billion yuan in funds.

Key sectors for IPO’s in 2022 have included computing, telecommunications and other electronic manufacturing equipment; software and IT services, and pharmaceutical manufacturing.

Dong Ximiao (董希淼), a researcher from Fudan University, said that the majority of A-share IPO’s in 2022 have come from the STAR Board and small and medium-sized enterprises, helping to better support demand for funds from smaller businesses as well as Chinese tech innovation.