Mainland companies made a record number of overseas listings this year, Caixin reports, with landmark debuts from some of China’s biggest tech names driving the surge.
In Hong Kong and New York, IPOs by Chinese firms were worth a total $45.6 billion, according to UBS data compiled Dec. 14. This nearly doubled from last year’s $19.2 billion.
Chinese companies, particularly in the technology sector, rode strong market sentiment worldwide towards the beginning of the year, aided by new regulation in Hong Kong to allow small, unprofitable biotech firms to go public.
Tech firms made up 58% of new Chinese listings in Hong Kong and 68% in New York. The top three largest IPOs – China Tower, Xiaomi, and Meituan – all hail from the sector.
The momentum slowed in the second half of the year however, and many investors grew bearish toward Chinese companies as China’s domestic markets faced a widespread rout. Of the top ten Chinese listings in Hong Kong in 2018, seven are now trading beneath their initial share price.