In the first three quarters, the number of new shares in A- shares fell 12% year-on-year, and the amount of financing fell 33% year-on-year.

The slowdown in the pace of IPOs has affected the attention of the entire market. With the end of the third quarter, the number of IPOs and the amount of financing in the first three quarters of A- shares are basically clear.

On September 22, Deloitte released the performance of the new stock markets in Mainland China and Hong Kong in the first three quarters of 2023, as well as the forecast analysis for the whole year.

Deloitte predicts that the Shanghai Stock Exchange and the Shenzhen Stock Exchange will rank first and second in the global IPO financing rankings. Nasdaq will leap to third place with the largest new stock ARM(ARM.NASDAQ) in the first three quarters of this year, and the Hong Kong Stock Exchange will rank eighth. However, the scale of super-large new stocks in the first three quarters of this year was significantly lower than that of the same period last year, and the total amount of financing for the world's top ten new stocks fell 54% from last year.

data show that among the top 10 largest IPOs in the world in the first three quarters, a shares took in 5, ranking according to the amount of financing: Hua hong company (688347.SH), SMIC integration (688469.SH), jinghe integration (688249.SH), Shaanxi energy (001286.SZ) and aviation materials shares (688563.SH), with the amount of IPO financing being 21.203 billion yuan, 11.072 billion yuan, 7.109 billion, 9.96 billion yuan and 7.2 billion yuan respectively.

Looking further at A- shares, Deloitte Capital Market Services predicts that by the end of the third quarter of 2023, there will be about 263 new shares in the-share market to raise 323.4 billion yuan, with the number of new shares falling 12% year-on-year and the amount of financing falling 33% year-on-year. In 2022, 300 new shares raised 485.4 billion yuan in the same period.

In terms of sub-sectors, the number of GEM IPOs is leading, and the amount of financing for the board is leading. As of September 23, the number of A- share listed companies during the year was 260 (three new shares will be issued next week). Among them, 97 are listed on the GEM, with IPOs raising 111.125 billion yuan, 61 listed on the CRE Board and IPOs raising 138.136 billion yuan.

the decline in the number of ultra-large-scale (above 5 billion yuan) IPOs is the main reason for the decline in the total amount of new shares raised in the first three quarters of A shares. In the first three quarters of this year, seven new shares raised more than 5 billion yuan, totaling 69.3 billion yuan. During the same period in 2022, 11 companies, including China Mobile (600941.SH), CNOOC (600038.SH), United Shadow Medical (688271.SH), Haiguang Information (688041.SH) and Jingke Energy (688223.SH), raised a total of 152.1 billion yuan. Looking at 2020 and 2021, the first three quarters of the super-large IPO financing amount exceeded 100 billion yuan.

the financing amount in the manufacturing industry is far ahead, reaching 135.8 billion yuan, mainly because this year is the big year for the listing of semiconductor fabs. the fabs listed in huahong company, SMIC and jinghe integration will probably become the three largest IPO of a shares in 2023. The technology, media and telecommunications sectors ranked second, while the consumer and pharmaceutical sectors saw a significant reduction in financing.

Deloitte told China Business News that with the regulatory adjustments made in various areas of the mainland stock and new share markets, especially the decline in the number of new shares approved in the past three months, it is expected that a smaller number of new shares will be listed in mainland China for the rest of the year. According to the current situation, there is a great chance that the issuance of large and super large new shares will be delayed.

In the first three quarters, the Hong Kong stock market continued its sluggish performance in the same period last year. The number of new shares and the amount of financing both fell sharply compared with last year. Both figures were the lowest in the past ten years. 44 new shares were issued and listed, and the amount of financing was 24.7 billion Hong Kong dollars. In the same period last year, it was 51 and 64 billion yuan respectively. The number of new shares and the total amount of financing fell 14% and 61% year-on-on-year.

It is worth noting that in the first three quarters, the average financing amount of new Hong Kong stocks was 0.59 billion Hong Kong dollars, a decrease of nearly 1/4 from the same period last year and the lowest in the past ten years. Deloitte Capital Markets Services expects that for the whole of 2023, the Hong Kong IPO market may usher in the lowest level of financing in the past 11 years.

Regarding the development outlook of Hong Kong's new stock market, Xie Minghui, the managing partner of Deloitte China Capital Market Services in East China's Hong Kong listing business, told CBN: "Although the Federal Reserve decided not to raise interest rates for the time being after a meeting earlier this week, it also pointed out that it will raise interest rates again later this year and plans to maintain interest rates at a higher level for a longer period of time, adding uncertainty to potential issuers preparing for listing in Hong Kong, and affect their listing window."

"While waiting for the basic market conditions to improve, now is a good opportunity to think about how Hong Kong can attract and implement more overseas companies to list in Hong Kong, in addition to signing cooperation memorandums with other overseas stock exchanges. How can Hong Kong better expand its capacity, further connect with the mainland market, enrich RMB-denominated investment products, introduce more funds from the mainland and other markets, and achieve a multi-level and diversified IPO market. How should the entire capital market better transform and leverage the promotion of professional investors, venture capital and private equity investment to the market to support the long-term and healthier development of the Hong Kong IPO market and its ecosystem." Xie Minghui added.