Wen (Investment Research Institute)
Source (beyond J curve)
Core discovery
A total of 122Chinese enterprises with VC/PE background have been listed on the market, and the IPO penetration rate of VC/PE institutions is 65%. Hillhouse Capital participated in 8 IPO companies and won the first place, Dachen and Shengchuang ranked among the top three.
The global market IPO declined slightly from the previous month, and the IPO scale of the A-share market reached a new high in the same period of nearly five years. The Internet stock IPO topped the list, and medical and health care ushered in the outbreak, with Beijing attracting the most money.
The fund-raising scale of the top ten IPO projects is all over 3 billion yuan, accounting for 43% of the total funds raised by H1, which is polarized compared with the average financing amount of other IPO projects.
The first part
VC/PE organization's IPO record
▼ IPO record list of VC/PE institutions in the first half of 2020
Table 1 2020 Overview of IPO performance of VC/PE institutions in the first half of the year
The average book return of ▼ fluctuates slightly
In the first half of 2020, a total of 122Chinese enterprises with VC/PE background went public, and the IPO penetration rate of VC/PE institutions was 65%. The total book exit return of IPO was 228.019 billion yuan, mainly concentrated in January and June, and the average book return fluctuated slightly. (see figure 1)
Figure 1 Paper return on exit of VC/PE Institution IPO from January 2020 to June 2020
Part II
IPO Market Analysis of Chinese Enterprises
In the first half of 2020, a total of 188 Chinese enterprises successfully IPO in A shares, Hong Kong stocks and US stocks, raising a total of 235.5 billion yuan. The scale of IPO fund-raising of TOP5 enterprises is in turn.Beijing-Shanghai high-speed railway, JD.com Group-SW, NetEase, Inc-S,Stone science and technology、Hua RunweiIPO is concentrated in manufacturing, health care, IT and informatization, while IPO is concentrated in Guangdong, Beijing, Jiangsu, Zhejiang, Shanghai and Hong Kong (see chart 2)
Figure 2 Overview of H1IPO 2020
▼ global market IPO declined slightly
In the first half of 2020, a total of 188 Chinese enterprises succeeded in IPO in A shares, Hong Kong stocks and US stocks, up 31.47% from the same period last year, down 18.26% from the previous month, and raising a total of 235.46 billion yuan, up 85.43% from the same period last year and down 39.16% from the previous month. On the whole, affected by the global spread of the novel coronavirus epidemic, the global market IPO generally showed a fluctuating decline, and began to show signs of recovery in June. (see figures 3 and 4)
Figure 3 scale and quantity of IPO of Chinese enterprises in H1 global market from 2016 to 2020
Chart 4 scale and quantity of IPO of Chinese enterprises in the global market from June 2019 to June 2020
The IPO size of ▼ A-share market reached a new high in the same period of nearly five years.
In the first half of 2020, a total of 118 Chinese companies were listed on the Shanghai and Shenzhen stock markets, up 84.38% from the same period last year. The total amount of funds raised by IPO in the same period last year was 138.712 billion yuan, a year-on-year increase of 1.30 times, reaching a new high in the same period of nearly five years. Since the opening of the market of Science and Technology Innovation Board in the second half of 2020, the number and scale of IPO in the A-share market have increased significantly. Science and Technology Innovation Board's advantage continued in the first half of 2019, with a total of 46 Science and Technology Innovation Board listed enterprises, accounting for 39% of the total IPO, raising a total of 50.195 billion yuan, and the size of IPO accounted for 36%. (see figure 5)
As of June 30, the China Securities Regulatory Commission has approved the registration of Science and Technology Innovation Board IPO 137, including 116 listed, 3 terminated, 1 unregistered, and 31 terminated.
Figure 5 scale and quantity of IPO of Chinese enterprises in H1-2020 H1A share market in 2016
IPO fluctuates slightly in ▼ A-share market
A total of 25 Chinese enterprises IPO in Shanghai and Shenzhen stock markets in June 2020, the largest number of IPO in the first half of the year, rising 38.89 percent from the previous month, 1.5 times higher than the same period last year, and raising 26.056 billion yuan, up 63.13 percent from the previous year. Thanks to the help of the Beijing-Shanghai high-speed railway, a large fund-raising project, IPO raised the largest amount of money in January, and since then the number of IPO has fluctuated slightly around the average. Generally speaking, although the novel coronavirus epidemic has a certain impact on the global capital market, the performance of the A-share market is relatively stable. The introduction of the new securities law, the continuous acceleration of Science and Technology Innovation Board's declaration, and the orderly promotion of gem reform and pilot registration system are all good for the overall performance of IPO in A-share market. (see figure 6)
Chart 6 scale and quantity of IPO of Chinese enterprises in A-share market from June 2019 to June 2019
▼ China Enterprise A share Market IPO raises funds for TOP5
In the first half of 2020, the TOP5 of the IPO fund-raising scale in the A-share market was concentrated in the Shanghai Stock Exchange, and the industry and region were scattered, which were different from last year; the IPO fund-raising scale was more than 3 billion yuan. By comparison, only 2 companies raised more than 3 billion yuan TOP5 in the H1A share IPO in 2019. Overall, the total fund-raising scale of IPO TOP5 increased by 1.43 times over last year. At the same time, the fund-raising scale of the Beijing-Shanghai high-speed railway, which ranks first, is also much higher than that of last year.Baofeng Energy. (see form 2)
Form 2 No.1 in 2019 and H1 in 2020 to raise TOP5 in the Hong Kong stock market
▼ Hong Kong stock market IPO size rose slightly compared with the same period last year.
In the first half of 2020, there were 49 Chinese enterprises in IPO in Hong Kong. The number of IPO decreased by 22.22% compared with the same period last year, and the total amount raised was 73.686 billion yuan, an increase of 32.08% over the same period last year. Affected by the novel coronavirus epidemic in China, the number of Chinese enterprises listed in Hong Kong fell slightly in the first half of the year compared with the same period, but thanks to the help of two major fund-raising projects of JD.com Group-SW (09618.HK) and NetEase, Inc-S (09999.HK), the total amount of funds raised by IPO increased slightly compared with the same period last year. (see figure 7)
Chart 7 scale and quantity of IPO of Chinese Enterprises in H1 Hong Kong Stock Market from 2016 to 2020
Most of the ▼ Hong Kong stock IPO projects are mainland enterprises.
In the first half of 2020, there were a total of 54 listings of Chinese companies in Hong Kong stocks, of which 5 were turnaround cases and the other 49 were all IPO cases. According to the statistics of the amount of funds raised by IPO, mainland Chinese enterprises IPO is dominant, with 35 mainland Chinese enterprises accounting for 98 per cent of all IPO funds raised in the Hong Kong stock market.
In the first half of 2020, the IPO of Hong Kong stocks of Chinese enterprises was mainly concentrated in March and June. With the control of the novel coronavirus epidemic in China, the examination and approval process for Chinese enterprises to list in Hong Kong will be gradually speeded up. Under the background of the recent continuous tightening of US regulatory policies, the return of Chinese stocks may accelerate. Taken together, the Hong Kong stock market of Chinese enterprises is now showing signs of recovery, and the Hong Kong stock IPO market is expected to improve in the second half of the year. (see figure 8)
Chart 8 scale and quantity of IPO of Chinese enterprises in Hong Kong stock market from June 2019 to June 2020
▼ China Enterprise Hong Kong Stock Market IPO raises TOP5
In the first half of 2020, the industry and regional distribution of TOP5 with IPO fund-raising scale in the Hong Kong stock market was significantly different from that of last year, and the advantages of Internet and health care industries were highlighted. In addition to Jiangsu, which is the same as last year, Guangdong, Beijing and Zhejiang also occupy seats. Overall, the total fund-raising scale of IPO TOP5 has increased by 1.17 times over last year. At the same time, the fund-raising scale of JD.com Group-SW, which ranks first, is also much higher than that of last year.Shen Wanhongyuan. (see form 3)
Form 3 H1 in 2019 and H1 in 2020 raising TOP5 in the Hong Kong stock market of Chinese enterprises
Both the volume and size of IPO in ▼ US stock market have risen.
In the first half of 2020, the number of IPO,IPO of 21 Chinese enterprises in the US capital market rose 31.25% from the same period last year, raising a total of 23.062 billion yuan, and the size of IPO doubled compared with the same period last year, up 73.68% from the previous month. The IPO of Chinese enterprises and US stocks in the first half of the year was mainly concentrated in February and June. Affected by the global spread of the novel coronavirus epidemic and the uncertainty of the development of Sino-US relations, the IPO market of Chinese enterprises and US stocks fluctuated obviously, but the overall number of IPO increased compared with the same period. (see figure 9, figure 10)
Chart 9 scale and quantity of IPO of Chinese enterprises in H1 US stock market from 2016 to 2020
Chart 10 scale and quantity of IPO of Chinese enterprises in the US stock market from June 2019 to June 2020
▼ China Enterprise US Stock Market IPO raises funds for TOP5
In the first half of 2020, the industry and regional distribution of TOP5 with IPO fund-raising scale in the US stock market was significantly different from that of last year, mainly in IT and information technology, medical and health industries. Except for Beijing, which was the same as last year, Shanghai and Jiangsu were among the finalists. Overall, the total amount of IPO raised by Chinese enterprises and US stocks raised by TOP5 has increased by nearly 60% compared with the same period last year. (see form 4)
Form 4 H1 in 2019 and H1 in 2020 raising TOP5 in the US stock market of Chinese enterprises.
Part III
Analysis of IPO Industry, region and Trading Plate of Chinese Enterprises
In the first half of 2020, the scale of Internet stocks IPO topped the list, with Beijing attracting the most money, and the number and scale of IPO on the Shanghai Stock Exchange won the championship.
The scale of IPO, the Internet stock of ▼, takes the lead.
In the first half of 2020, Internet, health care and manufacturing companies IPO raised more funds, accounting for 53% of the total funds raised in various industries. The representatives of listed companies in the three industries are JD.com Group-SW, Legend Biotech Corp andBull GroupThere are 56 IPO manufacturing companies, making it the industry with the largest number of IPO. (see figure 11, figure 12)
Chart 11 Distribution of IPO scale industries of H1 enterprises in 2020
Chart 12 Industrial Distribution of IPO quantity of H1 Enterprises in 2020
▼ Beijing IPO attracts the most money
In the first half of 2020, the number of IPO of Chinese enterprises in Guangdong was 40, ranking first, followed by Beijing and Jiangsu with 28 and 25 respectively. In terms of fund-raising scale, Beijing won the championship, with IPO raising 87.484 billion yuan, while Guangdong and Jiangsu ranked second and third respectively. (see figure 13, Table 5)
Figure 13 Regional distribution of IPO quantity and fund-raising scale of H1 Chinese enterprises in 2020
Table 5 Regional Distribution Table of the number and scale of IPO of H1 Chinese Enterprises in 2020
The number and scale of IPO in ▼ Shanghai Stock Exchange ranks first.
In the first half of 2020, 73 companies were listed on the Shanghai Stock Exchange, with a total fund-raising amount of 111.117 billion yuan, and the number and scale of IPO won the championship. Among them, Science and Technology Innovation Board listed 46, accounting for more than half of the number of IPO on the Shanghai Stock Exchange, making it the largest number of IPO; the main board of the Hong Kong Stock Exchange listed 45, the number of IPO ranked second, the amount of funds raised was 73.469 billion yuan, and the scale of IPO ranked first. The gem of the Shenzhen Stock Exchange has a total of 28 listings, of which the number of IPO ranks third, the amount of capital raised is 15.927 billion yuan, and the scale of IPO ranks fourth. Chinese enterprises listed on the NASDAQ Stock Exchange, with a total of 19 listed on the NASDAQ Stock Exchange, raising a total of 20.492 billion yuan. (see form 6)
Table 6 Distribution of different types of listed sectors of H1 China Enterprise IPO in 2020
The fourth part
Top Ten popular IPO of Chinese Enterprises
In the first half of 2020, the top ten IPO projects were concentrated in A shares and Hong Kong stocks, with a fund-raising scale of more than 3 billion yuan, and the average financing amount of other IPO projects showed a trend of polarization.
▼ IPO fundraising scale TOP10
The following table shows the IPO scale TOP10 of Chinese enterprises in the first half of 2020 (see Table 7)
Form 7 2020 H1 medium Enterprise IPO scale TOP10
Overview of the Top Ten IPO releases of ▼ in the World
1. Beijing-Shanghai high-speed railway
Beijing-Shanghai high-speed railway is the only railway company in the railway industry to introduce social cash investors and Sino-foreign cooperation. The company is mainly engaged in high-speed rail passenger transport services. On January 16, 2020, the Beijing-Shanghai high-speed railway was listed on the main board of the Shanghai Stock Exchange, issuing 6.28563 billion shares at a price of 4.88 yuan per share and raising 30.674 billion yuan. The listing marks the birth of China's first high-speed rail shares.
two。 JD.com Group-SW
JD.com Group is a leading technology-driven e-commerce and retail infrastructure service provider in China. On June 18, 2020, JD.com Group-SW listed for the second time on the main board of the Hong Kong Stock Exchange, issuing 133 million shares at an issue price of HK $226 per share and raising HK $30.058 billion.
3. NetEase, Inc-S
NetEase, Inc is an integrated Internet content service provider, covering e-mail services, e-commerce brands, online music platform, online education platform, information media platform and so on. On June 11, 2020, NetEase, Inc-S listed on the main board of the Hong Kong Stock Exchange, issuing 171 million shares at a price of HK $123 per share, raising a total of HK $21.092 billion.
4. Stone science and technology
Stone Technology is a company focused on intelligent cleaning for household use.RobotAnd other intelligent electrical appliances R & D and production companies, is also a member of the ecological chain of XIAOMI Group. On February 21, 2019, Stone Science and Technology listed on the Shanghai Stock Exchange Kechuang Board, issuing 16.7 million shares at an issue price of 271.12 yuan per share, with a total fund-raising amount of 4.519 billion yuan.
5. Hua Runwei
Huarun Wei is a semiconductor manufacturer. On February 27, 2020, China Resources Micro listed on the Shanghai Stock Exchange Kechuang Board, issuing 293 million shares at a price of 12.80 yuan per share, with a total fund-raising amount of 3.75 billion yuan. The listing became the first company to enter the A-share capital market in the form of red chips.
6. Kingsoft Cloud Holdings
Kingsoft Cloud Holdings is a well-known independent cloud service provider in China. Kingsoft Cloud Holdings listed on the Nasdaq Global Select Market on May 8, 2020 at an issue price of US $510 million per ADS17 share and 30 million shares of ADS, raising a total of US $510 million. This listing has become the first pure cloud computing stock of Chinese enterprises listed in the United States.
7. Bull Group
Bull Group is a supplier of switches, sockets and converters. On February 6, 2020, Bull Group listed on the main board of the Shanghai Stock Exchange. 60 million shares were issued at a price of 59.45 yuan per share, with a total fund-raising amount of 3.567 billion yuan. The listing has become the first domestic socket stock.
8. Sound net
Soundnet is a SDK solution provider for real-time audio and video communications. On June 26, 2020, Sound was listed on the Nasdaq Global Select Market at an offering price of US $17.5 million per ADS20 and a total of US $460 million in private placement of 22 million Class A common shares to Coatue CPP 10 LLC, Neumann Capital and Vitruvian Partners. This listing has become the first real-time interactive cloud stock in the world.
9. Legend Biotech Corp
Legend Biotech Corp is a developer of tumor cellular immunotherapy. Legend Biotech Corp listed on the Nasdaq Global Select Market on June 5, 2020 at a price of US $18 million per ADS23 per share and raised a total of US $436 million through a private placement of 1.0435 million common shares to parent company Genscript Biotech Corporation (01548.HK).
Zhongtai Securities is a comprehensive financial services provider. On June 3, 2020, Sino-Thai Securities listed on the main board of the Shanghai Stock Exchange, issuing 697 million shares at an issue price of 4.38 yuan per share, raising a total of 3.052 billion yuan.
The fifth part
Hot spots of IPO Policy in the first half of 2020
In the first half of 2020, the focus of IPO policy mainly focused on Science and Technology Innovation Board and gem reform and pilot registration system. On March 20, the China Securities Regulatory Commission put forward a specific evaluation index system for the attribute of scientific innovation. On April 27, the "overall implementation Plan for gem Reform and pilot Registration system" was issued, marking the official start of gem registration reform. Since May, Shenzhen Stock Exchange has issued two notices on doing a good job in gem reform and technical preparation for pilot registration system, and issued a guide to the market participants' technical system change. Gem reform and registration system landing work has begun initially, June 22. The first batch of 33 gem registration companies were unveiled, marking the official launch of the gem pilot registration system. Related announcements and notices on the return of red-chip enterprises to the A-share market and Science and Technology Innovation Board have been issued one after another.
The relevant policies are as follows:
On January 16, the China Securities Regulatory Commission formally issued "Q & An on issuance Supervision-questions and answers on matters related to applying for IPO Enterprises to implement the New income guidelines". The new policy requires that applicants for IPO companies should implement the new income guidelines from January 1, 2020, and all IPO enterprises and planned IPO enterprises will be affected.
On February 14, the China Securities Regulatory Commission issued the decision on revision, which will enter into force as of the date of promulgation.
On March 20, the China Securities Regulatory Commission formulated the guidelines for the Evaluation of the attributes of Science and Technology Innovation (for trial implementation), which was released a few days ago. The guidelines further clarify the connotation and extension of the enterprises with the attribute of science and technology, and put forward the specific evaluation index system of the attribute of science and technology. The attribute evaluation index system of science and technology adopts the structure of "regular index + exception clause", including 3 routine indicators and 5 exception clauses. Among them, three conventional indicators are "the amount of R & D investment or the proportion of R & D investment to operating income", "invention patent" and "compound growth rate of business income or operating income". The three indicators mainly reflect the enterprise's R & D input, output and its actual impact on enterprise management, and can comprehensively measure the R & D input-output and scientific and technological content of enterprises. The five "exception clauses" are mainly the "priority support in line with the national strategy and the possession of key core technologies" in the measures for the Registration and Administration of Science and Technology Innovation Board's initial Public offering (trial). The further refinement and implementation of enterprises with outstanding scientific and technological innovation ability to Science and Technology Innovation Board's issuance and listing is a further supplement to the three conventional indicators and will be strictly grasped in practice.
On April 27, the 13th meeting of the Central Committee for comprehensively deepening Reform examined and approved the "overall implementation Plan for the Reform and pilot Registration system of the growth Enterprise Market", marking the formal launch of the reform of the gem registration system.
On April 30, the China Securities Regulatory Commission issued the announcement on the relevant arrangements for the listing of innovative pilot red-chip enterprises in China, which shall enter into force as of the date of announcement. It is pointed out in the announcement that the market capitalization requirements of red chip enterprises listed abroad should be adjusted to meet one of the following standards: the market capitalization is not less than 200 billion yuan; the market capitalization is more than 20 billion yuan, and they have independent research and development, international leading technology and strong scientific and technological innovation ability. in the same industry competition in a relatively dominant position. If a red chip enterprise with an agreement control structure applies to issue shares, after accepting the relevant application, the CSRC will solicit the opinions of the industry competent department of the State Council, the National Development and Reform Commission and the Ministry of Commerce of the domestic entity of the red chip enterprise, and deal with them in accordance with the rules and regulations. If a red chip enterprise that has not yet been listed abroad applies for domestic listing, it shall, before making a declaration, formulate a plan for the reduction of stock shares and other matters involving the use of foreign exchange, which shall be submitted to the CSRC, which shall solicit the opinions of the relevant competent departments.
On May 8, the Shenzhen Stock Exchange issued a supplementary notice on doing a good job in gem reform and technical preparations for pilot registration, and updated the guidelines on the Technical system change of Shenzhen Stock Exchange gem Reform and pilot Registration Market participants and the data File Exchange Interface Specification of Shenzhen Stock Exchange on its official website.
On May 29, the Shenzhen Stock Exchange issued a supplementary notice on doing a good job in gem reform and technical preparation for the pilot registration system, again according to the adoption of market feedback.
On May 29th, in response to a series of suggestions made by deputies and committee members on Science and Technology Innovation Board and the registration system during the two sessions in 2020, the Shanghai Stock Exchange publicly responded and issued an article entitled "watching the two sessions by the Riverside | Capital Market" keywords: Science and Technology Innovation Board, Registration system, Ecological purification, Index representation ". With regard to the next direction of Science and Technology Innovation Board, the Shanghai Stock Exchange said that it will be problem-oriented and promote Science and Technology Innovation Board's work by optimizing "capital supply" and "system supply".
On June 5, the Shanghai Stock Exchange issued the notice on issues related to the issuance and listing of Red-chip Enterprises' Application Division. Four major problems in the process of red-chip's return to Science and Technology Innovation Board were solved by disclosing the treatment of priority rights in the valuation adjustment agreement, the adjustment and application of listing conditions of red-chip enterprises, the specific standards for the application of "rapid growth of business income" requirements, and the adjustment and application of related delisting situations of red-chip enterprises.
On June 12, the China Securities Regulatory Commission issued the measures for the Administration of Registration of initial Public offerings on gem (trial), measures for Registration of Securities issuance of companies listed on gem (trial), measures for continuous Supervision of companies listed on gem (trial) and measures for the Administration of recommendation Business of Securities issuance and listing, which shall enter into force as of the date of promulgation. On the same day, the Shenzhen Stock Exchange issued business rules and supporting arrangements related to the gem reform and pilot registration system, with a total of 8 major business rules and 18 supporting rules, guidelines and notices, covering five aspects: IPO audit, refinancing and M & A restructuring audit, continuous supervision, issue underwriting and transaction.
On June 22, the Shenzhen Stock Exchange issued the acceptance notice of the first batch of 33 enterprises under the gem pilot registration system through the listing audit business system, and the prospectus and other related documents were simultaneously disclosed on the gem listing audit information public website. The first batch of 33 enterprises under review were recommended by 18 sponsors, including 32 IPO enterprises and 1 refinancing enterprise. The first batch of enterprises officially accepted, gem reform and pilot registration system practice and operation has taken another important step.