That trend looks likely to continue, he said, with “big demand” originating from both domestic and institutional investors while business in the brand-new economy sector aim to go public.
“In terms of the IPO size and volume in the domestic China market, it has struck historical … peak in the previous ten years,” said Ma, chief investment officer at the firm.
It has been a “really interesting” year for China’s domestic stock market, William Ma of Noah Holdings (Hong Kong) told CNBC’s “Squawk Box Asia” on Monday, adding about $75 billion has actually been raised from approximately 400 listings.
SINGAPORE– China’s IPO market is set to keep expanding next year even after a hit 2020, according to the primary financial investment officer of a Chinese financial services firm.
Individuals go to the listing ceremony of Shenzhen Longtech Smart Control Co., Ltd and Shanghai Hi-Road Food Technology Co., Ltd at the Shenzhen Stock Exchange on December 2, 2020 in Shenzhen, Guangdong Province of China.
Stock listings of Chinese firms have controlled the rankings in 2020, according to research from EY.
Amongst the top 10 listings worldwide, Chinese companies comprised half of the list while also taking the top three spots. Those include Chinese chipmaker SMIC’s listing on the STAR Market in Shanghai along with e-commerce heavyweight JD.com’s secondary listing in Hong Kong. No Asia-Pacific firm beyond China handled to crack the top 10.
There was likewise one significant exception amongst the Chinese firms, however– financial technology giant and Alibaba-affiliate Ant Group. The firm’s highly prepared for dual-listing in Shanghai and Hong Kong was set to be the world’s greatest preliminary public listing. But that IPO was suddenly suspended in November as the business faces regulative examination.
EY’s Asia-Pacific IPO Leader, Ringo Choi, told CNBC that the strength of Chinese firms in the list shows that importance of the mainland’s economy along with its ability to impact stock market efficiency.
“That’s why every market is trying to attract those mainland company or business to go public there,” Choi stated.
Still, the potential market returns for noting domestically are likely to be an appealing proposition for mainland Chinese firms, he stated.
EY research study revealed the first-day return rate for IPOs in 2020 can be found in at a massive 187% for the Shanghai Stock Exchange’s Nasdaq-style STAR Market, versus 44% for the mainboard in Shanghai.
In contrast, Snowflake– the largest ever software application IPO and the most significant non-mainland firm to make a public launching this year– increased more than 111% on its first day of trading on the New York Stock Exchange in September.