EY: China leads world's IPO market in 2016
- By Guo Xiaohong
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E-mail China.org.cn, December 13, 2016
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Vivien Zhang (L), EY Assurance Partner, and Terence Ho, EY Greater China IPO Leader, at EY’s press briefing in Beijing on Dec. 12, 2016.[Photo/ Courtesy of EY] |
"The number of IPO deals saw steady increase throughout the year, as confidence and stability have returned to China IPO market," said Vivien Zhang, EY Assurance Partner, at yesterday's press briefing in Beijing.
In 2016 China led the world's IPO market, despite global uncertainty, with four of the ten largest IPOs globally by proceeds in 2016, including the largest deal of the year --Postal Savings Bank of China Co. Ltd., which raised US$7.6b on HKEx in September, according to a quarterly report Global IPO Trends: 2016 Q4 released at the briefing by EY, a global leader in assurance, tax, transaction and advisory services.
By volume, Shenzhen (SME board and Chinext) ranked first with 121 IPOs (11.5% of the world's total), slightly ahead of Hong Kong (main board and GEM), which ranked second with 117 IPOs (11.1%).
In 2016, HKEx's main board and Growth Enterprise Market (GEM) was the world's leading exchange by capital raised accounting for 19% of the global total, ahead of Shanghai (SSE) by 12%. Financials and healthcare were the two most active sectors by capital raised in the fourth quarter, raising US$2.6b and US$2.2b, respectively, accounting for 33% and 28% of the quarter's total.
For the year 2016, China's mainland witnessed a total of 225 IPOs exchanges, raising US$22.7b in proceeds, an increase of 3% in volume and a decrease of 4% in the amount of funds raised compared to 2015.
The fourth quarter can be seen as a turning point as the CSRC accelerated the pace of IPOs. There were 99 new listings in 4Q16, up from 65 IPOs in the prior quarter, while proceeds rose to US$11b from US$7.3b in 3Q16.
"As a result, the number of companies on the CSRC's waiting list for A-share IPOs has dropped to 731, from more than 850 earlier in the year. Meanwhile, investor for A-share IPOs remains overwhelming.
The number of IPOs worldwide in 2016 fell 16% year-over-year (YOY) to 1,055 and capital raised down by 33% to US$132.5b due to political and economic uncertainty globally, said Terence Ho, EY Greater China IPO Leader yesterday.
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