Market Insights Financial Corporate Finance

Initial Public Offerings - China

China

The transaction value in the Initial Public Offerings market is projected to reach €58.73bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.00% resulting in a projected total amount of €61.08bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to €143.80m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (€58,730.00m in 2024).

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Analyst Opinion

The Initial Public Offerings market in China has been experiencing significant growth and development in recent years.Customer preferences in the Chinese IPO market are heavily influenced by the increasing number of tech-savvy retail investors looking for opportunities to invest in innovative and high-growth potential companies.

These investors are attracted to IPOs of companies operating in sectors such as technology, e-commerce, and healthcare, reflecting a global trend towards investing in disruptive industries.Trends in the Chinese IPO market show a preference for dual-listings, where companies choose to list on both domestic exchanges like the Shanghai Stock Exchange and international exchanges like the Hong Kong Stock Exchange. This trend is driven by the desire to access a broader investor base, increase liquidity, and enhance the company's global visibility.

Local special circumstances, such as regulatory changes and government initiatives to boost the domestic capital markets, have played a significant role in shaping the Chinese IPO landscape. The introduction of registration-based IPO systems, reforms in listing rules, and measures to attract overseas-listed Chinese firms to return and list on domestic exchanges have all contributed to the market's growth and vibrancy.Underlying macroeconomic factors, including China's strong economic growth, increasing consumer spending, and government support for innovation and entrepreneurship, have created a favorable environment for companies seeking to go public.

The availability of venture capital and private equity funding, coupled with a growing middle class with disposable income, has further fueled the demand for IPOs in China.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.