China’s Securities Regulatory Commission has announced that China raised a whopping $31.8 billion in IPOs so far this year, which is the highest amount yet for China this century according to Bloomberg.
China is also on track to be the world’s largest IPO market this year since the $31.8 billion figure doesn’t even include the $19.2 billion IPO of Agricultural Bank of China.
“The rising interest in the small and medium board in Shenzhen and ChiNext definitely pushed the booming IPO market,” said Wesley Li, an analyst at research company ChinaVenture. “The regulator has also become more skillful in controlling the rhythm of approving new IPOs.”
Most of the IPOs in the first half were from companies selling shares on the small and medium-sized board and the ChiNext startup board, said CSRC’s Tong. Both markets are based in Shenzhen, a city in southern China.
What’s odd though is that China’s stock market was the worst performing in Asia and one of the worst in the entire world. Yet somehow it raised the most money from investors for IPOs.