E&Y: China to dominate global IPOs in 2011

Chinese companies will continue to lead the global market for initial public offerings in 2011, despite an overall slowdown in economic activity, state media reported, quoting research by Ernst & Young. In the second quarter, Chinese enterprises overshadowed global IPO activity in terms of both the number of offerings and the funds raised: 108 Chinese IPOs raised a total of US$20.4 billion, representing 28.6% and 31.6% of the global total, respectively. The Hong Kong Stock Exchange accounted for a greater proportion of the fundraising than any other global exchange, raising US$23.6 billion from 35 deals, while the Shenzhen Stock Exchange was the site of 144 offerings, more than any other bourse. “Although Chinese IPO activity has slowed down, with investors concerned about inflation in commodity and housing prices, the Chinese IPO pipeline is still very strong and China will continue to lead global IPO activity in 2011,” said Paul Go, a managing partner at Ernst & Young.