BEIJING, Oct. 13 (Xinhua) -- China's A-share market ecology improved after the first batch of registration-based initial public offerings (IPOs) were launched on the main board on April 10 this year, reported China Securities Journal earlier this week.
In the past six months, 188 new firms went public on A-share market, raising altogether 248.312 billion yuan of funds, showed statistics with Wind, a financial data provider.
On the sci-tech innovation board or STAR Market, 50 new companies financed 120.74 billion yuan of funds via IPOs and on the ChiNext market, 80 new firms got financing of 83.5 billion yuan from IPOs.
In total, the two boards contributed new IPOs whose proceeds accounted for over 80 percent of the aggregate IPOs in the past six months since April 10.
By sectors, IPOs by high-tech driven companies ballooned on A-share market, with information technology, new materials and health care sectors ranking high on the list of funds raised via IPOs for different industries during the period.
Since implementation of the across-the-board registration-based IPO reform, listings of the main board on A-share market became more inclusive and both the marketization of A-share market and efficiency of related IPOs improved over the past, contributing to a clearer multiple layer capital market system, said Thomas Leung, markets managing partner with PwC China.
Benefited from the more inclusive IPOs, nearly 10 companies that were not profitable before listing but boast strong growth momentum got listed on the STAR Market this year. Year to date, listed companies such as Beijing Deep Glint Technology Co., Ltd. (688207.SH) have turned profitable.
At the same time, registration-based IPO reform is not equal to looser requirements. Since April 10, a total of 107 companies withdrew their IPO applications.
Market experts told the newspaper that enhanced supervision and examination over the IPO review work of bourses drove them to improve on and on review quality and required IPO issuers and intermediaries to resume more responsibilities.
Thanks to better market ecology, investor structure on China's A-share market continued to optimize.
By the end of June, securities brokers, pension funds institutions and insurers all saw the market capitalization (market cap) of their A-share holdings rise from the first quarter of this year.
Among professional investors, market cap of tradable A-shares held by publicly-offered funds accounted for the highest proportion of A-share holdings by market cap at 7.82 percent by the end of June.
Alongside the investor side reform on capital market, more favorable policies are likely to debut to speed up investment in A-shares by long term investors and further boost investor structure optimization on the A-share market, market watchers said. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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