Investors study their prospects in the Chinese stock markets. (Photo : www.andrewchia.com)
A mid-year global IPO market report released on June 25, Thursday, by Ernst & Young (EY) has rated the stock exchanges of China as top in the global list in terms of funds raised in the first half of this year, which was boosted by the recent bullish performance, favorable regulation and increased competitiveness.
The report showed that the Shenzhen and Shanghai stock exchanges ranked first and second by number of IPO deals since the start of the year until June 16, followed by NASDAQ and the Hong Kong bourse.
The EY report indicated that the Shanghai Stock Exchange topped all bourses with $16.7 billion raised, followed by Hong Kong's $16.1 billion and New York Stock Exchange's $12.8 billion, during the same period.
China's exchanges have 241 IPOs and $40 billion funds raised during the period, which accounted for 38 percent of global IPOs by number of deals and 39 percent by capital raised.
As of June 16, the launch of 190 IPOs in the A-share market has raised $147 billion, a year-on-year increase of 265 percent and 316 percent, respectively, as reflected in the report.
Deal size has also contributed to the high volume of funds raised, as China's exchanges had recorded three largest deals in the second quarter: Guotai Junan Securities Co, Huatai Securities Co., and GF Securities Co.
EY said that faster review of IPO and approval process, the cut in interest rates, and a series of policies to stimulate capital market including the new registration-based system, all contributed to the surge in deal.
"The Chinese government is actively encouraging technology companies to go public on the A-share market, and the Shanghai Stock Exchange is on track to launch a new 'Board of Strategic Emerging Industries' to attract high-growth companies," Victor Chan, EY's Asia-Pacific Capital Markets Partner, said during a media briefing.
According to the report, the Chinese markets in the second half of 2015 will have extremely positive outlook.
