Shanghai bourse may overtake HK for IPOs
By Hu Yuanyuan (China Daily)Updated: 2007-01-05 09:58
"We don't expect any large IPO projects like the ICBC in 2007, though the
strong IPO growth will remain in Hong Kong," said Terence Ho, an Ernst &
Young partner for China IPO business.
In 2006, a total of 146.3 billion
yuan in funds was raised through IPOs in Shanghai, compared with only 2.4
billion yuan in 2005 as the regulatory authority suspended fundraising on
domestic markets to pave the way for its national stock reform.
Of the 14
IPOs in Shanghai last year, 46 percent concurrently issued both A and H shares,
while 34 percent were listed companies with H shares that then issued A shares,
the Ernst & Young report said.
"A plus H is the trend," said Raymond
Ng, a partner at Ernst & Young's Assurance and Advisory Services, adding
that many red chips are looking for ways to float shares in Shanghai in
2007.
PricewaterhouseCoopers expected the volume of new listings to hit
70 in Hong Kong this year. But the total capital raised may decline with the
absence of mega deals like the IPOs of the ICBC and Bank of China, which together accounted for 62 percent of the
total amount raised through IPOs in 2006.
Financial institutions, real
estate, retail and consumer goods-related companies from China's
mainland will be the key contributors to capital raised in 2007, according to
the PricewaterhouseCoopers report.
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