2024 is a pivotal year for China's capital market, with the CSRC announcing a series of reform measures at the end of 2023, including promoting the registration-based reform, optimizing the delisting system, and improving the STAR Market and ChiNext. These reforms are aimed at improving the quality, efficiency and vitality of the market and attracting more high-quality enterprises and investors to participate. However, there are still some issues and challenges in the market, one of which is the pace and size of IPOs.
An IPO, or initial public offering, is an important way for companies to go public, and it is also an opportunity for investors to obtain income. The quantity and quality of IPOs directly affect the supply, demand and confidence of the market. If there are too many IPOs too quickly, it will lead to the diversion of funds in the market, exacerbating market volatility and**. If the IPO is too few and too slow, it will lead to a lack of vitality in the market and affect the innovation and competition in the market. Therefore, the pace and scale of IPOs need to be adjusted according to the actual situation of the market and the dynamic balance between investment and financing.
However, it has recently been reported that many provinces have put forward the goal of promoting the listing of enterprises in their provinces when they announced their work plans for 2024. Among them, Jiangsu Province plans to add 30 new listed companies, Zhejiang Province plans to add 20 new listed companies, and Guangdong Province plans to add 20 new listed companies, a total of 70. These goals are well above the actual achievement in 2023. Taking Jiangsu Province as an example, there will only be 11 new listed companies in the province in 2023, while the target for 2024 is nearly three times that of 11. The listing plans of these provinces have undoubtedly brought tremendous pressure to the market.
In this regard, Hu Xijin, a senior **, published an article on social **, calling on all provinces to suspend the promotion of IPO plans and reduce the pressure from the source. Hu Xijin pointed out that the ** is falling so painful that shareholders are suffering, while many provinces have said that they will strive to add dozens of listed companies in their provinces within the year. He believes that new IPOs need to be supported and digested by more funds, and the biggest technical reason for the current increase is that there are many funds and few funds. He suggested that all provinces should have the concept of a game of chess in the country, support the confidence of the province, and wait until the province is relieved, and then promote the listing of companies in the province.
Hu Xijin's article has aroused widespread attention and discussion, and some people agree with his viewpoint, believing that all provinces should take into account the overall situation, not only consider the interests of their own provinces, but also consider the interests of the whole country, and contribute to the stability and development of the country. Some people also oppose his view, arguing that it is normal for provinces to promote the listing of enterprises in their own provinces, which is in line with the principle of marketization, and should not be restricted, but should be determined by the market itself in terms of the pace and scale of IPOs.
Whether in favor or against, Hu Xijin's article has aroused people's thinking and attention to the IPO issue. An IPO is a complex issue that involves the interests and demands of multiple parties, and requires a comprehensive consideration of various factors, which cannot be generalized or one-size-fits-all. The pace and scale of the IPO should be adjusted according to the actual situation of the market and the dynamic balance between the investment and financing ends, so as to ensure the vitality and innovation of the market, as well as the stability and confidence of the market. This requires the joint efforts and coordination of all parties, rather than unilateral decisions and promotions.