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China’s IPO market is set to keep booming in 2021, says investor


SINGAPORE — #China’s IPO market is set to keep booming next year even after a blockbuster 2020, according to the chief investment officer of a #Chinese financial services firm.

#It has been a “very exciting” 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 been raised from roughly 400 listings.

“#In terms of the IPO size and volume in the domestic #China market, it has hit historical … peak in the past 10 years,” said #Ma, chief investment officer at the firm.

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#That trend looks likely to continue, he said, with “huge demand” coming from both domestic and institutional investors while companies in the new economy sector look to go public.

#People attend 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.

VCG | VCG via #Getty #Images

#China’s global IPO dominance

#Stock listings of #Chinese firms have dominated the rankings in 2020, according to research from EY.

#Among the top 10 listings globally, #Chinese firms made up half of the list while also taking the top three spots. #Those include #Chinese chipmaker SMIC’s listing on the STAR #Market in #Shanghai as well as e-commerce heavyweight JD.com’s secondary listing in #Hong #Kong. #No #Asia-Pacific firm outside of #China managed to crack the top 10.

There was also one notable exception among the #Chinese firms, however — financial technology giant and #Alibaba-affiliate #Ant #Group. The firm’s highly anticipated dual-listing in #Shanghai and #Hong #Kong was set to be the world’s biggest initial public listing. #But that IPO was abruptly suspended in #November as the company faces regulatory scrutiny.

EY’s #Asia-Pacific IPO #Leader, #Ringo #Choi, told CNBC that the strength of #Chinese firms in the list demonstrates that importance of the mainland’s economy as well as its ability to affect stock exchange performance.

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“#That’s why every market is trying to attract those mainland company or business to go public there,” #Choi said.

#Still, the potential market returns for listing domestically are likely to be an attractive proposition for mainland #Chinese firms, he said.

EY research showed the first-day return rate for IPOs in 2020 coming in at a whopping 187% for the #Shanghai #Stock #Exchange’s #Nasdaq-style STAR #Market, versus 44% for the mainboard in #Shanghai.

#In comparison, #Snowflake — the largest ever software IPO and the biggest non-mainland firm to make a public debut this year — rose more than 111% on its first day of trading on the #New #York #Stock #Exchange in #September.



[ source link ]
https://www.cnbc.com/2020/12/30/chinas-ipo-market-is-set-to-keep-booming-in-2021-says-investor.html

##Chinas #IPO #market #set #booming #investor

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