Activity on China’s equity capital markets on the mainland and beyond has slumped to multi-decade lows, highlighting how the loss of momentum in the world’s second-largest economy has weighed on investor confidence, reports the Financial Times. Chinese companies have raised just $6.4 billion in mainland IPOs, follow-on and convertible share offerings this year—the lowest level on record, according to Dealogic data.
Their fundraising in offshore markets including Hong Kong is $1.6 billion, the lowest year to date since 2003. China’s outbound M&A of $2.5 billion is the lowest recorded amount over the same period since 2005.
On international bond markets, Chinese companies, banks and government borrowers have issued $26 billion this year, slightly above last year’s $24 billion but otherwise the lowest level since 2016. On the mainland, borrowing of $246 billion is up 17% on last year.