SHANGHAI: China’s Shanghai Stock Exchange ranked second in global fund-raising during the first half, backed by sizeable listings and the continuing popularity of the bourse’ sci-tech innovation board, commonly known as the STAR market, according to a report by global audit and consultancy firm KPMG. Proceeds from global initial public offerings (IPOs) decreased 8 percent year on year to 68.8 billion U.S. dollars in the first half, mostly due to a decline in the funds raised in major stock exchanges in the United States and Europe. However, the fall was partly offset by an increase in fund-raising in the Asia market, especially the Shanghai Stock Exchange, the report said.
Building on the success of the STAR market, Shenzhen’s ChiNext board launched a registration-based system, and ChiNext’s first batch of registration-based IPOs is expected to debut in the third quarter of 2020.
“Following the implementation of a registration-based mechanism in the STAR market, the ChiNext board is officially launching a similar system for IPOs. Such reform will increase investment and diversity in the A-share market while enhancing liquidity,” said Louis Lau, partner of Capital Markets Advisory Group of KPMG China. TLTP
