(Yicai) June 4 -- China’s three main stock exchanges accepted more filings for initial public offerings last month than they did in the whole of January to April, in a sign that the country’s IPO market is bouncing back.

The Shanghai, Shenzhen, and Beijing bourses accepted 16 IPO applications last month, compared with 11 in the first four months, according to Wind Information data. In all, 27 companies had their filings accepted in the first five months, a big jump from just two in the same period of last year. 

The Beijing Stock Exchange led the way, accepting 18 applications, six of which were in the last week of May alone.

The increase signals that China’s IPO market is starting to recover, said Cui Yanjun, a senior official at the Beijing bourse. Businesses likely rushed to submit applications at the end of May to meet mid-year financial reporting deadlines, he added.

The 18 companies seeking to go public in Beijing all posted solid financial results. Most raked in net profit of over CNY60 million (USD8.3 million) last year on revenue of more than CNY300 million (USD42 million). Three of them earned over CNY1 billion (USD139 million). The Beijing exchange tends to attract innovative small and medium-sized firms.

“The improved quality of IPO applicants means we can expect more vibrant investment and fundraising activities from companies listed on the Beijing bourse going forward,” said Zhou Yunnan, founder of Beijing Nanshan Investment.

Shenzhen’s ChiNext board accepted two IPO filings at the end of May, the first that the Nasdaq-style market had accepted in 2025, signaling an upswing in activity there.

The authorities have slowed the pace of IPO applications since the summer of 2023 due to a weak stock market and many new listings falling below their debut price. As a result, almost no IPOs were accepted in the first half of last year. Activity only started to pick up again late last June.

Editor: Tang Shihua, Kim Taylor