logo
Regulatory curbs hurt mainland China IPOs, ceding first-half crown to Hong Kong

Regulatory curbs hurt mainland China IPOs, ceding first-half crown to Hong Kong

The Star12 hours ago
Mainland China's three stock exchanges had a sluggish first half, raising a third of the bounty from initial public offerings (IPOs) in Hong Kong, due to a regulatory crackdown that has hobbled fundraising since August 2023 and left the primary market in the lurch.
Some 50 companies raised a combined 33.6 billion yuan (US$4.7 billion) by selling new shares on the nation's three exchanges, according to data compiled by Bloomberg. That was a third of the US$13.5 billion raised on the Hong Kong stock exchange, which leapfrogged 12 spots from a year earlier to become the world's top-ranking IPO destination in the first half.
'As long as the regulatory curb remains in force, the IPO market won't return to normalcy,' said Dai Ming, a fund manager at Huichen Asset Management in Shanghai. 'But the good thing is that as a result, more good-quality companies in emerging industries will be listed going forward.'
Mainland China's most valuable offering in the first half of the year was Zhongce Rubber Group, a Hangzhou-based tyre maker that drew 4.07 billion yuan by selling shares on the Shanghai Stock Exchange, according to Bloomberg. That was just a fraction of the US$5.24 billion that was raised in Hong Kong in May by Contemporary Amperex Technology, the world's largest maker of batteries for electric vehicles.
Consumer-electronics maker Arashi Vision came in second place on the mainland, pulling off a 1.94 billion yuan offering on the Shanghai bourse's tech-heavy Star Market. Shenzhen Kaifa Technology, which makes smart metering terminals, ranked third after completing an offering valued at 1.17 billion yuan on the Beijing Stock Exchange.
Holding shares of the 50 IPOs since their debuts on the mainland fetched an average return of 214 per cent, according to Bloomberg data. But those gains were inflated by regulations, as new shares were priced at around 23 times earnings in an effort to make sure there were no flops.
A ray of hope emerged last month when Wu Qing, the CSRC's chairman, said China would reinstate rules that allowed listings of unprofitable companies to support tech innovation.
Listings of pre-profit companies had been suspended since the regulatory clampdown started. Wu's remark was seen by some as a sign that the regulator was softening its stance on IPOs.
According to Shanghai-based brokerage Shenwan Hongyuan Group, the move would have a positive impact on IPOs and the pace of new shares could quicken slightly in the second half.
It said it expected between 80 and 120 companies would raise between 70 billion and 83 billion yuan from IPOs this year. - SOUTH CHINA MORNING POST
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Anwar wraps up three-nation visit to boost trade and ties
Anwar wraps up three-nation visit to boost trade and ties

New Straits Times

time4 hours ago

  • New Straits Times

Anwar wraps up three-nation visit to boost trade and ties

RIO DE JANEIRO: Prime Minister Datuk Seri Anwar Ibrahim departed for home today after a series of official visits to three countries – Italy, France, and Brazil. The chartered flight from Malaysia Airlines carrying the premier and the Malaysian delegation departed the Galeao Air Force Base (BAGL) at 1pm local time (midnight Monday Malaysian time). This series of visits by the Prime Minister, starting with a three-day official visit to Italy, forms part of Malaysia's ongoing efforts to strengthen bilateral relations and promote economic cooperation at the global level. The visits to these major economic hubs – Rome, Paris, and Rio de Janeiro – were to strengthen Malaysia's diplomatic ties and trade relations with the respective nations. These three markets collectively recorded bilateral trade valued at RM50.91 billion (US$11.14 billion) last year. The Prime Minister was accompanied by a business delegation comprising representatives from major Malaysian corporations and innovative enterprises, including Petronas, Khazanah Nasional Bhd, Tenaga Nasional Bhd (TNB), Maybank, FGV, YTL Power, and Sunway. Anwar's inaugural visit to Italy was undertaken at the invitation of Italian Prime Minister Giorgia Meloni. The visits were to further strengthen bilateral relations between the countries across a wide range of sectors. In Rome, the Prime Minister was accompanied by five Cabinet ministers, namely Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamed Khaled Nordin, and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir was also part of the delegation. In Paris, the Prime Minister met with President Emmanuel Macron, with discussions focusing on trade, technology, and education, as well as the humanitarian crisis in Gaza. In addition to a roundtable with France's industrial giants, the Prime Minister also engaged with local Muslim leaders, met Malaysian citizens in France, and delivered a public lecture at Sorbonne University on July 4. After the Paris stopover, Anwar headed to Rio de Janeiro to attend the 17th BRICS Summit upon invitation from President Luiz Inacio Lula da Silva. Malaysia's role as a BRICS Partner Country and Asean Chair for 2025 was to emphasise the importance of multilateralism based on law, governance of artificial intelligence, climate action, and global health, representing the aspirations of over 650 million Asean citizens. Anwar attended the BRICS Summit as a partner country to the bloc comprising Brazil, Russia, India, China, and South Africa. - BERNAMA

Malaysia stresses global health and climate equity at BRICS summit
Malaysia stresses global health and climate equity at BRICS summit

New Straits Times

time5 hours ago

  • New Straits Times

Malaysia stresses global health and climate equity at BRICS summit

RIO DE JANEIRO: Malaysia believes that vaccine access, strong public health systems, and the regulation of global medical supply chains are central to both national stability and international security. Prime Minister Datuk Seri Anwar Ibrahim stressed that when governments divert limited resources from essential services such as healthcare and clean water to service historical debts, financial systems designed to foster development instead hinder progress. "Let us begin with a hard truth. In too much of the world, life expectancy remains shaped not by biology, but by income. "The fact that a child's chance of surviving past the age of five is still largely determined by GDP per capita represents a failure for us all," he said during his intervention at the "Environment, COP30 and Global Health" session of the 17th BRICS Leaders Summit here today. Malaysia, he said, welcomes the launch of the BRICS Partnership for the Elimination of Socially Determined Diseases. "It reflects a clear understanding that disease cannot be meaningfully addressed without tackling the conditions that entrench it," said Anwar. The Prime Minister voiced Malaysia's support for deeper collaboration between BRICS and Asean to strengthen surveillance, accelerate knowledge transfer, and build resilience across borders. He also reaffirmed Malaysia's commitment to a credible and just low-carbon transition, highlighting the country's pledge to reduce emissions intensity by 45 per cent by 2030 and to achieve net-zero emissions by 2050. "These targets are grounded in law and embedded across public policy," he said, noting that Malaysia's approach is anchored in the National Energy Transition Roadmap and supported by efforts to introduce a carbon pricing mechanism and regulatory reforms across key sectors. Anwar said that Malaysia is also assessing the role of carbon capture, utilisation, and storage (CCUS) in decarbonising industry, with policy frameworks currently being developed. However, he stressed that policy alone is not enough - transition requires capital. "At present, international climate finance stands at roughly US$300 billion per year. This is far short of the estimated US$3 trillion required by developing countries alone to meet mitigation and adaptation needs by 2030," he said. As this year's Asean chair, Anwar said Malaysia is working to strengthen regional coherence on climate action. He said the nation is focused on improving access to green finance, harmonising standards, and positioning Southeast Asia as a centre for clean energy innovation and sustainable investment. Ahead of COP30 in Belem, Brazil, this November, Anwar called for a shift "from aspiration to execution". "Climate justice is ultimately about allocation: of capital, of risk, and of responsibility," he said. The Prime Minister said Malaysia views health, climate, and finance as inseparable, warning that a degraded environment weakens health systems while an underfunded health system undermines resilience. "And both suffer when sovereign debt restricts national policy space," he added. Anwar arrived here on Saturday to attend the 17th BRICS Leaders' Summit hosted by Brazil at the invitation of President Luiz Inacio Lula da Silva.

Malaysia Committed To Strengthening Economic Co-operation With Brics -- Tengku Zafrul
Malaysia Committed To Strengthening Economic Co-operation With Brics -- Tengku Zafrul

Barnama

time5 hours ago

  • Barnama

Malaysia Committed To Strengthening Economic Co-operation With Brics -- Tengku Zafrul

KUALA LUMPUR, July 7 (Bernama) -- Malaysia is committed to strengthening co-operation in economics, trade and investment with BRICS countries, especially with the great potential of artificial intelligence (AI) which needs to be harnessed for inclusive development. 'With ASEAN's digital economy expected to reach US$2 trillion (US$1=RM4.231) by 2030, this is a golden opportunity that we cannot afford to waste,' said Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz in a post on X today. Tengku Zafrul said the side meetings with BRICS partner countries and business leaders opened up space for Malaysian companies to explore markets and investment opportunities in future-oriented sectors.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store