BEIJING, Aug. 28 (Xinhua) -- China's A-share market financing by initial public offerings (IPO) by far this year has already exceeded 290 billion yuan, hitting a new high from 2011 to 2019, reported Securities Times Friday.
Wang Jiyue, an investment bank expert, attributed the improved IPO size to accelerating IPO paces and relaxed rules on IPO pricing on ChiNext market under the registration-based IPO system this year.
Among the IPO issuers this year, a majority of them are engaged in sectors with relatively more emerging industries such as technology, media and telecommunication (TMT). Over 60 percent of them came from machinery, pharmaceutical, electronics, computer, electronic device and communications.
However, aggregate financing on China's A-share market stood only at 978.3 billion yuan by far this year, representing merely a lukewarm level compared with the more than two trillion yuan in 2016.
This pointed to the changed financing structure on China's A-share market where financing by IPOs surged while refinancing including following-on offerings shrank by a certain degree.
But it is good news for investors that on the supply side, there were relatively ample capital flows into China's A-share market thanks mainly to robust issues of new funds.
Statistics with Wind, a leading financial information service provider in China, showed that new hybrid funds issues exceeded 970 billion units this year, already higher than the annual figure of 2015. New stocks-investing funds issues ran over 250 billion units, also higher than the annual figure of 2019. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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