Initial public offerings on mainland exchanges have climbed to $57.8 billion so far in 2022, the largest ever for such a period. There have been five IPOs of above $1 billion since January, and one more is on the way. That’s versus just one such sale each in New York and Hong Kong, and none in London, reports Bloomberg.
China’s IPO market has defied headwinds such as rising interest rates and fears of a US recession, which have brought major equity fundraising elsewhere to a virtual standstill. Offerings in the Asian economy—whose monetary policy is diverging from the Federal Reserve—are largely geared toward local investors.
The surge in listings, according to some market watchers, is also driven by concern that economic conditions could worsen later in the year as flareups in virus cases cause Beijing to stick to the strict COVID-Zero strategy. Top leaders have signaled a softening on this year’s official growth target of around 5.5%, denting optimism about a rebound.