The Shanghai Stock Exchange’s STAR market started trading on July 22, 2019. Photo: Xinhua

More than 340 companies have been listed on China’s Shanghai and Shenzhen stock exchanges so far this year, according to the China Securities Regulatory Commission (CSRC).

About 180 of these were on the sci-tech innovation board and the reformed ChiNext board, China’s Nasdaq-style board, said CSRC vice-chairman Yan Qingmin.

Yan, speaking at the 2020 Annual Conference of China Society for Finance and Banking last weekend, said the overall size of equity funds in China has grown 69% since the beginning of this year while the proportion of institutional investors to all investors continued to rise.

Yan called for improving the delisting system to increase the protection of investors’ interests. He said some companies might have manipulated their balance sheets and lost the ability to operate their businesses sustainably.

He said the CSRC will take the implementation of the new Securities Law as an opportunity to further improve the governance of listed companies, strengthen civil compensation and criminal accountability and accelerate the formation of an investor protection pattern with a sound system, precise and effective, and internal and external coordination.

The CSRC will also focus on the detailed implementation of the principles and provisions of the new Securities Law, and speed up the formulation and revision of supporting measures.

Market liquidity

China’s central bank injected liquidity into the banking system through open market operations on Wednesday.

The People’s Bank of China injected 10 billion yuan (US$1.52 billion) into the market through seven-day reverse repos at an interest rate of 2.2%. With 120 billion yuan of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 110 billion yuan from the market.

Unicorn companies

In 2020, China and the United States created 81.8% of the world’s top 500 unicorn companies, according to a report published by the Qingdao municipal government and the Research Center of China’s Private Enterprises of Renmin University.

China still ranked No.1 in the world in number and valuation of its unicorn companies, which amounted to 217 and US$$937.69 billion, respectively. The top five enterprises on the list are Wagmo, ByteDance, Alibaba Cloud, Infor and Didi Chuxing Technology. The valuation of Wagmo and ByteDance reached 100 billion yuan each.

In the United States, there were 192 unicorn enterprises with a total valuation of US$805.07 billion.

Company news

On Tuesday, Nio Inc, a Shanghai-based automobile maker, tumbled 10.23% to US$45.36 in the New York stock exchange. Xpeng Motors also lost a similar 10.89% to close at US$52.36.

The sell-off could be driven by China’s National Development and Reform Commission’s investigation into the investments and land use of China Evergrande New Energy Vehicle Group.

The declines of the two US-listed firms came after both reported big jumps in deliveries last month.

Nio delivered 5,291 vehicles in November, up 109.3% year-on-year, setting a new monthly record and marking nine months of consecutive year-on-year growth, according to a statement on Tuesday. In the first 11 months, Nio’s total deliveries rose 111.1% to 36,721 units from the same period of last year. Nio narrowed its net loss by 53.5% year-on-year to 1.2 billion yuan in the third quarter.

Xpeng also saw strong deliveries in November with sales of 4,224 vehicles, up 342% year-on-year, according to a statement released on Tuesday. The company’s year-to-date deliveries reached 21,341 units, up 87% year-on-year.

The stories were compiled by Nadeem Xu and Shan Hui and first published at ATimesCN.com.