Today (22 February), PwC released its initial public offerings (IPOs) for China's technology, ** and telecommunications (TMT) companies in the second half of 2023. In the second half of 2023, the number of listings and the amount of funds raised by mainland TMT companies decreased compared with the first half of last year. However, with the steady progress of the comprehensive registration system, China's capital market still shows strong vitality. With the introduction of the new direct listing system on the Beijing Stock Exchange and the further recovery of the listing of Chinese concept stocks in the United States, small and medium-sized technology companies will also have more options for listing.
According to the data, in the second half of 2023, the domestic capital market will continue to be the main listing destination for mainland TMT companies, with 24% and 32% of mainland TMT companies choosing to list on the STAR Market and ChiNext respectively. There were 12 IPOs in the TMT industry on the STAR Market, which received a total of about 33.9 billion yuan, accounting for 55% of the total financing. There were 16 IPOs in the TMT industry on the Shenzhen Growth Enterprise Market, with a total financing amount of about 13.7 billion yuan, accounting for 22% of the total financing. In addition, 16% of mainland TMT companies chose to list on the Beijing ** Stock Exchange, a total of 8 companies, receiving about 1.5 billion yuan in financing, accounting for 2% of the total financing. At the same time, 26% of mainland TMT companies chose to list in Hong Kong and overseas, a total of 13 companies, receiving about 6.8 billion yuan in financing.
The number of IPOs of mainland TMT companies fell to 50 from 66 in the first half of 2023. The total amount of financing decreased from approximately RMB82.9 billion in the first half of 2023 to approximately RMB61.8 billion. Hua Hong Semiconductor***, which was listed on the STAR Market, raised approximately RMB21.2 billion) and is the largest IPO of a mainland TMT company in the second half of 2023.
Through the analysis of key financial data, it can be seen that in the second half of 2023, there will be 32 IPOs in the technology hardware and equipment industry, accounting for 64%; 17 in the software and services industry, accounting for 34%; *1 in the industry, accounting for 2%. Among them, the overall revenue scale of enterprises in the technology hardware and equipment industry is relatively high.
2023 is the first year for China's capital market to enter the comprehensive registration system, which is of great significance for increasing the proportion of financing, promoting sustained and high-quality economic development, and creating a market-oriented, law-based and international business environment.
William Chow, PwC's Global Technology, Technology & Telecommunications Industry Leader, said: "With the steady progress of the full registration system, China's capital market is still showing strong vitality, and there are still more opportunities for technology innovation companies with key core technologies to go public. In 2024, China's economic development will gradually enter a new stage, while continuously consolidating the supervision of the whole chain of the first-class issuance and registration system, with the improvement of this multi-level capital market system, scientific and technological innovation, advanced manufacturing and green development enterprises will usher in new listing development opportunities. At the same time, with the introduction of the new direct listing regime of the Beijing Stock Exchange, the Beijing Stock Exchange will enter a stage of rapid development in 2024 and will provide a new listing venue for small and medium-sized technology enterprises. ”
Liu Yuou, an audit partner at PwC, said in an interview that in 2023, the number of Chinese concept stocks listed in the United States has picked up, and the regulators' support for qualified private enterprises to list overseas, as well as the maturity of the relevant systems and rules for the management of overseas listings, have paved the way for Chinese enterprises to enter the overseas capital market, and in the context of the gradual easing of geopolitics, the listing of Chinese concept stocks in the United States will further recover in 2024.
Text: Beijing Youth Daily reporter Lin Lishuang.
Edited by Field.