The recent initial public offering (IPO) of Xinya Cable has set a new benchmark for investor participation, attracting over 14 million new subscribers—the highest figure recorded since 2023. This surge reflects growing confidence in China’s primary market, with the average number of subscriptions for new listings (excluding the Sci-Tech Innovation Board and Beijing Stock Exchange) approaching 12 million this year, significantly outpacing 2023 and 2024 levels.
The renewed enthusiasm for IPOs appears closely tied to their exceptional debut performance. Newly listed stocks have delivered an average first-day gain exceeding 200% in 2024, with none falling below their issue price. This consistent upward momentum has reinforced investor appetite for new offerings, creating a virtuous cycle of strong demand and robust pricing.
While the current IPO boom demonstrates recovering market vitality, analysts caution about potential overheating risks. The combination of record subscription volumes and triple-digit first-day returns raises questions about valuation sustainability. Regulators may face pressure to implement measures ensuring orderly market development while maintaining investor protection standards in this resurgent IPO climate.
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