(Yicai Global) Dec. 6 -- The amount raised through initial public offerings on the Chinese mainland’s stock markets is expected to reach a record high this year, and the Shanghai stock exchange has defied a global economic downturn to be the largest IPO market in the world, closely followed by the Shenzhen bourse, The Paper reported today, citing a recent report.

China’s stock markets have outperformed those in other countries both in the number of IPOs and the amount raised, according to a report published by UK professional services firm Pricewaterhouse Coopers yesterday.

Almost 400 companies are estimated to go public on the country’s exchanges this year, raising CNY560 billion (USD80.4 billion), an increase of 3 percent from last year, the London-based company said. And the Shanghai Stock Exchange and Shenzhen Stock Exchange are at the top of the world’s IPO league table.

This success is due to the resilience of the Chinese economy, the emergence of many tech firms and the return of large red-chip companies listed overseas to the mainland stock markets, said Wang Song, head of PwC’s Northern China Audit Team.

“By the end of December, there will have been around 150 new flotations on the Shanghai bourse this year, raising about CNY340 billion (USD48.6 million),” PwC said. “Of these, 32 will be on the main board, bagging CNY107.9 billion, while the rest will be on Shanghai’s Nasdaq-like Star Market, scoring CNY236.1 billion, the highest amount among Chinese bourses.

The Shenzhen bourse is expected to float around 190 new stocks, raising CNY210 billion. Of these, 39 will be on the main board, securing CNY31.7 billion, and the rest on the Nasdaq-style ChiNext Board bagging CNY176.5 billion. At around 145 IPOs, ChiNext ranks first in the number of new share sales.

The Beijing Stock Exchange, which has been operating for just over a year, is also growing rapidly with 62 IPOs this year, PwC said. In the first 11 months, the Beijing bourse’s IPO financing amount topped CNY10 billion (USD1.4 billion) and should reach CNY13.1 billion by the end of the year, it added.

Next year could be even better as more red chip firms return home and as the IPO registration-based system, which allows companies to list much more quickly than the approval-based model, is used more widely, it said.

“Next year there are likely to between 400 and 460 IPOs on the mainland exchanges with a financing volume of between CNY590 billion (USD84.3 billion) and CNY652 billion,” PwC said.

The main boards in Shanghai and Shenzhen could have as many as 90 listings in 2023, raising as much as CNY90 billion (USD12.8 billion), it said. The Star Market may have up to 140 IPOs, bagging a maximum of CNY360 billion while ChiNext could host 170 IPOs, securing up to CNY190 billion. There will be as many as 60 IPOs on the Beijing bourse, raising CNY12 billion.

Editor: Kim Taylor