With the end of the first half of 2021 and the steady recovery of the global economy from the COVID-19 epidemic, what is the situation of IPO?

Recently, KPMG released a report on the IPO market in mainland China, Hong Kong and the world in the first half of 2021, showing that the total amount of funds raised and the number of listed companies in the global market in the first half of the year were 210 billion US dollars and 1047 respectively, up 196 per cent and 134 per cent respectively over the same period last year.

Among them, the A-share markets of the United States, Hong Kong, China and the mainland are still in the leading position. The Hong Kong Stock Exchange ranks third among the five largest stock exchanges in the world, followed by the Shanghai Stock Exchange.

It is worth mentioning that, driven by the increase in the trading volume of gem and Science and Technology Innovation Board in the first half of the year, the number of IPO listed on the A-share market reached 248, double that of the same period in the first half of 2020.

From the follow-up, A-share listing applications are still active, about 690 companies have applied for listing, most of them are Science and Technology Innovation Board and gem listing applications, the industry is mainly information technology, TMT and high-end industrial market, reflecting the confidence and recognition of the A-share gem and gem registration and listing mechanism.

In addition, in terms of the amount raised, six of the top 10 A-share IPO came from Science and Technology Innovation Board and the growth Enterprise Market. The largest A-share IPO raised 22.7 billion yuan for three Gorges Energy, and the largest H-share IPO raised 48.3 billion Hong Kong dollars (40.2 billion yuan) for Kuaishou Technology Technology.

Global IPO fundraising increased greatly in the first half of the year

Investor confidence remains robust as global uncertainties disappear, according to the KPMG report. The total amount of money raised in the global market and the number of IPO listings rose sharply in the first half of this year, raising a total of US $210 billion, with 1047 listings, up 196% and 134% respectively from the same period last year.

Among themThe A-share markets of the United States, Hong Kong and the mainland continue to lead the global IPO marketIn terms of industry, the total amount of funds raised in the three markets reached 130.7 billion US dollars.Technology, media and communications, health care and life sciences and consumer goodsThe market isThe performance is the most prominent.The industries accounted for more than 70 per cent of the total funds raised in the US, Hong Kong, China and A-share IPO markets.

According to KPMG, for reasons, the rise in global IPO funding includes: developed economies around the world under vaccination programsThe macro-economy has steadily recovered from the COVID-19 epidemic, the upsurge of listing of new economy and biotechnology companies, and the upsurge of enterprises rushing to Hong Kong for secondary listing, etc.。

It is worth mentioning that, supported by strong liquidity, secondary listings and block trading, the IPO market in Hong Kong, China, was boosted by increased investor demand and strong market sentiment, raising a total of US $26 billion in the first half of 2021, a record high.

In terms of global exchange rankings, the Hong Kong Stock Exchange currently ranks third among the five largest stock exchanges in the world, followed by the Shanghai Stock Exchange, with IPO raising a total of US $20.6 billion.

Liu Guoxian, head partner of KPMG China Capital Markets, said:

The high level of market liquidity and the strong investment atmosphere have supported the global IPO market, which was active in the first half of this year, and the total amount of funds raised nearly tripled compared with the same period last year. Coupled with the increase in fund-raising in the United States, Hong Kong, China and Europe, global IPO activities are expected to continue to flourish in the second half of this year.

Science and Technology Innovation Board and gem helped A-share IPO erupt.

In the first half of this year, under the positive influence of the steady recovery of the domestic economy and the further development of the registration system, the A-share IPO market continued to be active, especially driven by the increase in the trading volume of gem and Science and Technology Innovation Board in the first half of this year, and the number of IPO in the A-share market doubled compared with the first half of 2020.

Data show that a total of 248 companies in the A-share market succeeded in IPO in the first half of 2021, an increase of 110% over the same period last year, and the total amount raised reached 212.7 billion yuan, an increase of 53% over the same period last year.

Among them, there were 87 IPO on Kecheng Board of Shanghai Stock Exchange and gem of Shenzhen Stock Exchange in the first half of the year, with a fund-raising amount of 71.7 billion yuan and 53.6 billion yuan respectively, and 54 IPO on the main board of Shanghai Stock Exchange and 20 on the main board of Shenzhen Stock Exchange, with a fund-raising amount of 74.1 billion yuan and 13.3 billion yuan respectively.

It is worth pointing out,Science and Technology Innovation Board and gem played an important role in the A-share IPO results in the first half of the year, with a total of 174enterprises in IPO, raising a total of 125.3 billion yuan.

In terms of the funds raised, six of the top 10 A-share IPO companies in the first half of the year came from Science and Technology Innovation Board and the growth Enterprise Market. Among them, the largest A-share IPO project was three Gorges Energy, raising 22.7 billion yuan.

In terms of the industry, in terms of the funds raised, in the first half of this year,Industrial market, TMT (information technology, media and telecommunications) and consumer goodsThe market occupies the top three industries, KPMG analysisDue to the further development of the digital economy and high-end manufacturing in China, the listing momentum of companies from TMT and industrial markets will continue.。

At the same time, due to the construction of a new development pattern in which the domestic and international cycles promote each other, the domestic market will also become an important market for future consumption growth, and the traditional industries of the related consumer goods market will also benefit.

Judging from the situation of IPO companies planning to be listed, A-share listing applications are still active, with about 690 companies applying for listing, most of which are those of Science and Technology Innovation Board and gem. KPMG believes that this reflects that Science and Technology Innovation Board and the gem listing mechanism are deeply recognized by the market.

Liu Dachang, partner of KPMG China Capital Markets Advisory Group, said:

By revising the rules, regulators hope to improve the overall market quality to support the development of a high-quality economy, and the A-share market is still in a period of prosperity in China's IPO market, which brings more opportunities for listed companies. In addition, the "dual cycle" economic strategy positions the mainland market as the pillar of China's future growth, reflecting that innovative growth enterprises have great potential to promote China's economic growth.

HKEx IPO ranks third in the world in raising funds.

In the first half of this year, it was clear to the outside world that there was wave after wave of Hong Kong stock listings.The amount of IPO raised by HKEx also reached a record high of US $26 billion over the same period, ranking third in the world.。

According to the KPMG report, the number of IPO in the Hong Kong market reached 46 in the first half of this year, raising a total of HK $213.2 billion, although the number is lower than that of last year, but the total amount raised increased by 130% compared with the same period last year.

Chinese reporters from brokerages noted that while the number of IPO in the Hong Kong stock market had not increased, the amount of money raised in the Hong Kong stock market reached a record high in the same period, in addition to being attributed to the abundant liquidity of the market, mainly due to the listing of large mainland technology and logistics companies in Hong Kong.

For example,Among the top 10 IPO projects in Hong Kong this year, most of the top five are mainland technology and logistics enterprises (Kuaishou Technology Technology, JD Logistics, Inc., Baidu, Bilibili Inc. and Trip.com). Among them, the largest IPO project is Kuaishou Technology Technology, which raised HK $48.3 billion.。

In addition, Hong Kong's new listing system marks its third anniversary this year, which allows secondary listings of new economy companies with different share structures, biotech companies that have not yet made a profit, and eligible companies. In the first half of this year, 13 companies implemented IPO under Hong Kong's new listing system, raising a total of HK $141.1 billion, accounting for 66 per cent of the total raised during the period.

Yayi Zhu, managing partner of KPMG's New Economic Market and Life Sciences in Hong Kong, China, said that the two-pronged approach of mainland and overseas capital has turned the Hong Kong market into a market with abundant liquidity and diversified development.

Zhu Yayi's analysisBenefiting from the free, open and adaptable environment of the Hong Kong market, the HKEx has naturally become the second listing place for mainland companies listed in the United States, and mainland investors are more familiar with these brands and businesses. Before that, many enterprises have come to Hong Kong for secondary listing.More relevant companies are expected to follow similar practices, and HKEx is expected to become one of the world's leading listings by 2021.

From the perspective of the industry, Zhu Yayi analyzed that as the global community gradually gets rid of the impact of the epidemic and establishes a new social normal, the market has an increased demand for technology that can improve the quality of products and services, reliable, innovative, and people-oriented, which will be a key driver of future growth.It is expected that the listing momentum of Hong Kong stocks in new economy sectors such as health care, life sciences, logistics and supply chain, and financial technology will remain strong in the coming quarters.