Mainland China and Hong Kong IPO markets: 2021 Q1 review

Mainland China and Hong Kong 2021 Q1 review

KPMG’s analysis and review of the mainland China and Hong Kong IPO markets in 2021 Q1

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Hong Kong’s IPO market continued its strong momentum from the second half of last year, achieving a historic high in Q1 2021, with total funds raised hitting USD 13.9 billion1, according to KPMG’s latest analysis. The Shanghai Stock Exchange also ranked among the top 5 stock exchanges with USD 6.9 billion in IPO proceeds recorded1.

The analysis, from KPMG’s 2021 Q1 review of Mainland China and Hong Kong IPO markets, shows that total funds raised globally more than tripled compared with the same period last year. The US, Hong Kong and China’s A-share markets continue to take the lead, raising a combined total of USD 61.4 billion, representing over 63% of the global total1.

While funds raised through special purpose acquisition companies (SPACs) are not included in the global traditional IPO tally, the analysis finds that SPACs also continued to be popular in Q1 2021, with a record breaking USD 95.6 billion raised1.

Driven by strong liquidity, investor demand has remained solid this quarter. Three sizeable Chinese technology company listings in Hong Kong raised a total of HKD 92.4 billion, representing 70% of total funds raised in Hong Kong during the quarter.

On the back of a strong recovery by China’s domestic economy and the implementation of registration-based listing platforms, the A-share IPO market remained active during the first quarter of the year. The STAR Market continued to make its mark with 35 deals, raising a total of RMB 33.2 billion. Thirty-three deals were completed under the ChiNext reform, which focuses on serving innovative growth companies and start-ups, raising a total of RMB 19.0 billion.

Remarks1: Analysis based on data as at 24 March 2021

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