The A-share market in China has more than doubled its total funds raised via Initial Public Offerings over the first three quarters year on year, while the H-share market in Hong Kong has seen a 40% year-on-year decrease in IPO fund-raising, Caixin reported, quoting a KPMG report.
In mainland China, there were 346 IPOs, raising a total amount of 172.9 billion yuan (US$22.13 billion) over the first nine months of this year. The amount has already outnumbered the total funds raised in 2016.
More than half the IPOs, both by volume and by value, came from the industrial sector and TMT (Technology, Media, Telecommunication) industries. Though the funds raised by the financial service sector account for only 6% of the total amount, it has dominated the top three mega IPOs.
KPMG estimates that IPOs in the A-share market will reach 440, with the total funds raised adding up to 230 billion yuan.
In Hong Kong, there were 51 IPOs listed on the main board reaching a total of HK$80.7 billion (US$10.33 billion) over the first three quarters.
KPMG expects the IPO volumes on the main board will rise to 90, with another 95 IPOs on GEM (Growth Enterprises Market), adding the total funds raised to HK$150 billion for the whole year.