In the first 11 months of this year, Chinese companies' capital raised from initial public offerings (IPOs) amounted to only US$21.8 billion, falling by 70 percent from a year earlier, a report said yesterday.

According to the report released by market researcher Zero2IPO Group, 113 Chinese companies were listed in domestic or overseas markets from January to November, with average raised capital of US$193 million each. The number of IPOs and total capital raised both hit the lowest record in the past three years, dropping by 44.3 percent and by 75.3 percent respectively than the corresponding period last year.

In overseas markets, the number of Chinese IPOs decreased by 61 to 37 in the 11 months, with capital raised falling about 46.4 percent to US$6.922 billion. In the domestic market, the number of IPOs fell by 27.6 percent to 76 in the period, with capital raised dropping about 72.6 percent to US$14.91 billion.

In the 11 months, 76 investment institutions from home and abroad shored up 110 funds. The number of funds and raised capital increased by 89.7 percent and 29.1 percent respectively from a year earlier. Among the 110 new funds, 84 are renminbi funds and US$7.08 billion of capital will be invested in China's mainland.

Compared with last year, the investment structure has also adjusted. Investment related to the IT industry occupied less than 40 percent of the total investment portfolio. Companies in fast expansion period are favored by over half of the investment, but those in the initial stages received less investment capital.

Though the number of IPOs decreased significantly, the domestic market is still the main channel for venture capitals and private equities.

(China Daily December 10, 2008)