A man takes photos of a big screen displaying stock prices at the listing ceremony of the first batch of registration-based initial public offerings (IPOs) of enterprises debuted on the ChiNext board at Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province, Aug. 24, 2020. (Xinhua/Mao Siqian)
BEIJING, Aug. 23 (Xinhua) -- Since the establishment of the registration-based IPO system on the ChiNext board, about 182 companies have been successfully listed and about 140.15 billion yuan (about 21.6 billion U.S. dollars) has been raised in their IPOs as of Sunday, according to data from financial information provider Wind.
This indicates that capital goes directly to business startups and innovation, fueling a burgeoning "new economy".
Meanwhile, the registration system reform on refinancing applications has improved the proportion of direct financing, market vitality and financing efficiency thanks to optimized institutional arrangements.
The Shenzhen Stock Exchange had accepted 362 refinancing applications as of August 20, among which 248 enterprises had finished their registration, aiming to raise 238.4 billion yuan.
Newly-listed enterprises under the registration-based IPO system vary in industries, with advanced manufacturing and service industry serving as majority. The stock exchange revealed that among the 182 listed companies, industries of computer, communication and other electronic equipment manufacturing, special equipment manufacturing, general equipment manufacturing and professional service ranked top five industries.
Besides, companies listed on China's Nasdaq-style board of growth enterprises tend to invest more on research and development (R&D), with R&D investment of the 182 companies accounting for 4.44 percent and 6 percent of gross revenue in last year and the first quarter of this year, respectively, far higher than that of the A-share market.
High R&D investment brings out better growth potential and profitability. Data from Wind showed that the ChiNext-listed firms saw a revenue of 426.09 billion yuan and a profit of 38.36 billion yuan in 2020, up 17.89 percent and 43.93 percent year on year, respectively.
The reformed ChiNext mainly serves growth-oriented innovative and start-up enterprises, supports the innovation of mode, service and format, and promotes the in-depth integration of traditional industries with the new ones, said Tang Songhua with Huatai United Securities.
(Edited by Li Shimeng with Xinhua Silk Road, lishimeng@xinhua.org)
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