China’s major stock exchanges are facing a tough start to the year as proceeds from initial public offerings (IPOs) in Hong Kong, Shanghai and Shenzhen dwindled, reports the South China Morning Post. Tighter regulations and the loss of two potential jumbo deals from Alibaba Group Holding suggest no relief any time soon.
Twelve companies raised HK$4.73 billion ($604.4 million) from first-time stock sales in Hong Kong in the first quarter, representing a 29% decline from a year earlier, according to data compiled by London Stock Exchange Group. That is the least since the $580 million generated in the second quarter of 2022, and the worst first-quarter performance in 15 years.
The Star Market in Shanghai generated $986.3 million of proceeds, while Shenzhen’s ChiNext Board experienced had $707.5 million. Their global rankings slipped to seventh and ninth, respectively. A year ago, their volumes were $3.5 billion and $4.62 billion, respectively.