China’s capital markets saw a notable rebound in IPO activity in May, with 16 new listings accepted across the Shanghai, Shenzhen, and Beijing stock exchanges—the highest monthly figure this year. The Beijing Stock Exchange (BSE) led the surge, accounting for nearly 70% of new acceptances, while the Shenzhen ChiNext Board broke its “zero acceptance” streak for 2024 with its first IPO approvals.
The newly accepted companies demonstrate strong profitability, with the Shanghai Main Board’s IPO candidates reporting an average net profit of 787 million yuan, and the Shenzhen Main Board’s averaging higher earnings. Year-to-date, 27 companies have now entered the IPO pipeline, signaling a potential revival in China’s IPO market after a sluggish start to 2024.
Analysts attribute the rebound to regulatory easing and improved market sentiment, though challenges like stricter financial scrutiny and global economic uncertainties persist. The resurgence could bolster investor confidence, but sustainability hinges on continued policy support and stable macroeconomic conditions.
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