Limp Chinese IPOs in US, HK Halve First-Half Fundraising Total
Xu Wei
DATE:  Aug 03 2019
/ SOURCE:  yicai
Limp Chinese IPOs in US, HK Halve First-Half Fundraising Total Limp Chinese IPOs in US, HK Halve First-Half Fundraising Total

(Yicai Global) Aug. 2 -- The amount of money raised by Chinese companies that went public in mainland China, Hong Kong and the US in the first half was just 51 percent of what it was a year earlier as listings outside the mainland disappointed.

Chinese listings in those three markets fell 10.6 percent to 143 firms in the first six months of the year, with the total amount raised totaling CNY127 billion (USD18.4 billion), data released yesterday by ChinaVenture Investment Consulting shows. That represents an 11.2 percent year-on-year decrease in the number of debuts and a 20 percent drop in funds raised. ChinaVenture did not give any reasons.

In contrast, initial public offerings in the Chinese mainland performed well overall led by Ningxia Baofeng Energy Group which bagged CNY8.2 billion in its Shanghai IPO. Some 64 companies, an increase of 52 percent from a year earlier, saw the amount of money they raised jump 32.5 percent to CNY60.3 billion.

The number of listings in Hong Kong fell 33 percent to 63, with funds raised dropping 69 percent to CNY55.8 billion. In the US, 16 Chinese IPOs brought in CNY10.9 billion. ChinaVenture did not provide comparative data, but Yicai Global estimates this to be a third fewer than in the second half of last year and a 69 percent drop in investment.

Ningxia Baofeng Energy's performance was followed by Shenwan Hongyuan Group and Hansoh Pharmaceutical Group which both raised over CNY6 billion each in their Hong Kong listings. Luckin Coffee, China's archrival to Starbucks, was the biggest earner in the US, raking in CNY4.2 billion on the Nasdaq.

In general, manufacturing, financial and chemical industry IPOs performed best.

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Keywords:   IPO