Deloitte, one of the "Big Four" accounting organizations in the world, expects the A-share market to have 110 to 150 new listings, raising around 140 to 170 billion yuan (20.3 to 24.7 billion U.S. dollars) next year, according to the latest report released by Deloitte China.
Given numerous factors including the ongoing tight regulatory scrutiny and the current decline of the Renminbi foreign exchange rate, Deloitte came to the above conclusions.
Deloitte said that a majority of the IPO issuers in 2019 on the A-share market would be small and medium-sized manufacturing, technology and consumer businesses.
"There are still positive conditions to advance the A-share IPO activities such as the upcoming launch of the new technology board in Shanghai with a registration-based regime, the Shanghai-London Stock Connect and the inclusion of more A-share stocks into the MSCI. The market is also anticipating the Chinese government to initiate more economic stimulus measures," said Anthony Wu, leader of the A-Share Capital Market, National Public Offering Group at Deloitte China.
In 2018, according to the report, the Chinese mainland market, comprising the Main Board in Shanghai, and the SME Board and the ChiNext in Shenzhen, is likely to see a total of 106 IPOs raising approximately 140.2 billion yuan (20.4 billion U.S. dollars) in funding, both significantly dropping from 436 new listings and 230.4 billion yuan (33.5 billion U.S. dollars) in 2017 by 76 percent and 39 percent respectively.
"While the Main Board remains the most selected market, raising the most funds this year, the ChiNext saw the steepest fall in the number of new listings over the past year," said the report.
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