IPO market expected to pick up in 2013: PwC

This year could see 200 listings raise up to 150b yuan on mainland

China's A-share market in 2013 is expected to see 200 new listings that could raise 130 billion yuan ($20.9 billion) to 150 billion yuan, fueled by an improved capital market and strengthening economy, according to international accounting firm PricewaterhouseCoopers.

The estimate compares to 155 IPOs last year, which raised total funds of 108.3 billion yuan, PwC said.

The Shanghai Stock Exchange attracted 26 IPOs in 2012, raising 38.3 billion yuan, down 33 percent and 64 percent respectively compared to the previous year.

The Shenzhen SME Board listed 55 IPOs last year, down 52 percent year-on-year, which raised 34.9 billion yuan, a fall of 66 percent, PwC figures showed.

ChiNext listed 74 IPOs, down 42 percent on 2011, with funds raised reaching 35.1 billion yuan, an increase of 56 percent.

Frank Lyn, PwC's China and Hong Kong managing partner, said four key sectors accounted for a large share of the IPOs: industrial products, information technology, financial services, as well as retail and consumer.

According to the PwC figures, there are now about 830 enterprises waiting to list on the Shanghai and Shenzhen stock markets.

"These enterprises point toward an active IPO market in 2013, but their fund-raising plans are subject to economic and political trends and market confidence," Lyn added.

Most economists expect China's GDP growth this year to be higher than in 2012 due to government stimulus measures, increasing the likelihood of a growth in companies coming to the market.

Qu Hongbin, HSBC's chief economist in China, for instance, said in a recent research note that he is expecting GDP growth of around 8.6 percent in 2013.

 

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