China IPO grows with Record
$58 Billion Boom

August, 2022

Vine Strategy


China IPO grows with Record $58 Billion Boom

Initial public offerings (IPOs) in China have climbed up to $60 billion so far in 2022, the largest ever in such a small space of time.

IPOs in China have been some of the largest initial offerings of the past few years. There have been five IPOs of above $1 billion since January, and one more is on the way. There has been only 1 in New York and Hong Kong, and none in London. 

China’s IPO market saw a successful year despite rising interest rates and fears of a US recession. Offerings in the Asian economy, whose monetary policy is diverging from the Federal Reserve, are mostly aimed at local investors.

China’s share in global IPO proceeds has more than tripled to 44% this year from 13% at end-2021, according to data. Telecom provider China Mobile and energy producer CNOOC, had the biggest debuts of 2022, both listed at home after being kicked out of the US. In China, they raised $8.6 billion and $5 billion and are trading well above their listing prices.

Tech Sector Boom

The tech sector has been one of the busiest for new share sales in China. A semiconductors maker, a manufacturer of digital storage products and a chips producer surged after debuting in the mainland on Friday. Together, their IPOs raised $1.1 billion.  A lot of the stocks now coming to market in China are from the tech sector, that investors seem eager to buy given the focus on building up home-grown capabilities

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