China Leads Global IPO Volumes

China's IPO market trounces the world with a $58 billion boom.

China Leads Global IPO Volumes

China's IPO market has been exhibiting steady growth in times of volatility, as it climbed to $57.8 billion so far in 2022, - the largest ever for such a short period.

According to data compiled by Bloomberg, there have been five IPOs of above $1 billion in China since January.

At the same time, there was only one IPO above $1 billion in New York and Hong Kong, while there were none in London.

The report also added that the Asian giant’s share of global IPO proceeds has more than tripled to 44 percent this year, from 13 percent at the end of 2021.

However, offerings in the Asian economy are primarily targeted at local investors because its monetary policy differs from that of the Federal Reserve. China's IPO market has resisted obstacles including rising interest rates and worries about a US recession, which have effectively stopped substantial equity fundraising elsewhere.

The Bloomberg report, quoting market experts, pointed out that the surge in listings could be spurred by concern that economic conditions might look gloomier later in the year, due to the looming scare of the pandemic.

“They have a weaker outlook for the market and worry that factors including earnings uncertainty could make a listing in the future harder than now,” Shen Meng, a director at investment bank Chanson & Co. told Bloomberg.

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