Chinese initial public offerings have raised more than five times as much money as those in the US this year as a crop of fresh listings in the world’s biggest economy failed to appear after a dire 2022, reports the Financial Times. Rising interest rates, stubbornly high inflation and the recent turmoil in the US banking sector have dashed hopes of a recovery in companies floating on Wall Street.
European markets have also been moribund, leaving Asia—and particularly China—as the clear global leader in IPO markets this year, helped by an end to the tough pandemic restrictions and a new streamlined listings regime for the Shanghai and Shenzhen stock exchanges.
“It’s not so much that Asia has exploded, it’s just that the US and the rest of the world have died down so much that China and other markets end up accounting for a lot of activity,” said Avery Spear, an analyst at Renaissance Capital. “China has been somewhat resilient thanks to government involvement.”
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