In 2021, the number of IPO companies and the amount of funds raised in China hit a new high since 2000


An IPO, also known as an initial public offering, is simply the first time a company sells its shares to the public.The number of IPO companies and the amount of money raised in China last year hit a record high since 2000, data showed.A total of 524 companies raised 543.773 billion yuan in initial public offerings last year, up 13.16 percent year on year, according to the Association of Listed Companies.Ipos continued to grow by 13 percent from a high of 480 billion yuan raised in 2020.Tian Xuan, deputy dean of Tsinghua University’s Wudaokou School of Finance: There are a lot of emerging high-tech enterprises, such as machinery manufacturing, electronic industry and medical and health care, which also reflects the transformation of China’s capital market from traditional cyclical enterprises to high-tech, high-tech and hard-core enterprises.In addition, from the point of view of the performance of a single quarter, the trend of fund-raising scale increased quarter by quarter is very obvious.Data showed that from the first quarter to the fourth quarter of last year, the IPO fundraising scale was 78.35 billion yuan, 135.644 billion yuan, 161.145 billion yuan and 167.536 billion yuan respectively.According to statistics, last year’s IPO raised an average of 1.04 billion yuan, a total of three companies raised more than 10 billion yuan.The five companies raised between $5 billion and $10 billion.Chen Li, member of the Chief Economist Committee of the Securities Association of China: The gradual increase in the amount of capital raised shows that the registration system has achieved remarkable results and more and more enterprises can achieve rapid financing through it. On the other hand, the overall liquidity of the current market is very good.China’s multi-level capital market, consisting of the Shanghai and Shenzhen main boards, the Science and Technology Innovation Board, the Growth Enterprise Board, and the North China Exchange.Data show that in last year’s IPO, the growth enterprise board, science and technology innovation board accounted for 69%.Data show that of the 524 ipos last year, 199 companies went public on the Growth Enterprise Market, 162 on the Science and Technology Innovation Board, 122 on the main board and 41 on the Beijing Stock Exchange.The number of IPO companies in the innovation and innovation sector accounted for 69% in total.Chen Li, member of the Chief Economist Committee of the Securities Association of China: From the perspective of ipos, they are mainly concentrated in mechanical equipment, pharmaceutical and biological, electronics and chemical industries. The industry concentration is very high.Mainly under the conditions of the current registration system, the number of GEM, SCIENCE and technology innovation board IPO companies accounted for a very high proportion.On November 15, 2021, the Beijing Stock Exchange, which aims to serve innovative small and medium-sized enterprises, was officially opened.As of February 15, three months after the opening of the BSE, the total market value of 84 BSE companies reached 225.455 billion yuan, and the average daily turnover of BSE was about 1.843 billion yuan, an increase of more than three times than the average daily turnover of selected stocks before the opening.Among the listed companies on bSE, high-tech manufacturing and modern service industries account for nearly 90%, and smes account for 94%, which fully demonstrates bSE’s precision and inclusiveness towards innovative smes.Tian Xuan, vice president of Tsinghua University Wudaokou School of Finance: I hope to build a multi-level capital market through differentiated market institutional arrangements, which can better help our enterprises at different stages to obtain financing and market support, which is conducive to the stable and rapid development of enterprises.In January this year, the failure rate of 91.67%, while the scale of IPO financing for enterprise quality improvement continues to expand, the project failure rate has attracted more attention.Project over rate, that is, the number of IPO enterprises accounted for the total application of THE PERCENTAGE of IPO enterprises.Data show that since this year, the IPO rate has risen significantly compared with last year.Data show that in January this year, 33 of the 36 projects have successfully passed the meeting, the rate of passing the meeting is 91.67%, a significant increase compared with 84.21% in December last year.In terms of different sectors, the meeting failure rate of BSE was 100%, that of GEM was 93.75%, that of SCIENCE and Technology Innovation Board was 90%, and that of main board was 87.5%.Tian Xuan, deputy dean of Tsinghua University’s Wudaokou School of Finance: One is the registration system. After three years of trial, it is becoming more and more mature. The coordination of various links, such as the submission, review, registration and issuance of materials, is more smooth.At the same time, we can also see that the quality of listed enterprises is indeed improved, but also for the rate of increase will also have a very important influence factors.Third, we do see that companies that have failed to publish, or have voluntarily withdrawn material, can adjust the pace of their releases.Experts say that the capital market ecology is also changing as the rate of new shares passing and the amount of money raised increase.At present, the full implementation of the registration system has gradually met the conditions.On the whole, notable progress has been made in reforming basic systems such as issuance underwriting, listing, trading, continuous supervision, delisting, and investor protection. A high-standard and multi-disciplinary system of administrative penalties, civil compensation, and criminal accountability has been further improved.Shenwan Hongyuan Underwriting sponsor private placement and sales Department general manager Gai Yiming: under the registration system, intermediary agencies to implement the national strategy, activate the market innovation and entrepreneurship development more prominent responsibility, sponsor brokers to the issuer timely check more fully, sponsors assume more social responsibility and disclosure audit obligations.At the same time, the pricing is fully formed by the issuers, main underwriters, investors and other market participants.The comprehensive registration system puts forward higher requirements on the influence, valuation and pricing ability of investment banks, and the ability to issue at the right time.Data show that the IPO fundraising volume in 2022 continues to grow on the basis of last year’s high growth, and by the end of January 2022, the IPO fundraising volume has exceeded 220 billion yuan, an increase of more than 37% compared to the same period last year.Experts predict that this year, the capital market will help more small and medium-sized enterprises that are in line with the national strategic direction and have a strong desire to go public to obtain financing and promote high-quality development of enterprises.Tian Xuan, Deputy Dean of Tsinghua University Wudaokou School of Finance:We pay more attention to future through the IPO can be listed, there are a lot of representing the country’s key core technology, their high technology, new kechuang properties of some of these plates, such as digital economy, such as new energy, such as carbon neutral, like communication technology, like chips, etc., they actually represents the direction of the economic development of our country.Therefore, the capital market should vigorously foster and support such a market to truly serve the real economy.In addition, experts said that for investors, the increase in the supply of new shares is also gradually breaking the myth of invincibility, IPO hit new is no longer risk-free welfare, stock pricing is the market game behavior, investors need to carefully participate in.Chen Li, member of the Chief Economist Committee of the Securities Association of China: Under the normalization of IPO, shareholders have more investment choices, but at the same time, they have higher requirements for investors’ investment and research ability.So shareholders choose to play new, need to do a good job of new research, to have a full understanding and cognition of the enterprise, and then participate in play new.

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