2022year,AshareIPO listingBoth in terms of volume and financing amount, it far exceeds European and American markets. Shanghai Stock Exchange, Shenzhen Stock ExchangeIPO listingThe financing amount ranks first and second globally. Meanwhile, the US marketIPO listingThe amount raised decreased90%Above, NASDAQ and NYSE10The exit from the top five global markets for the first time in recent years, what are the reasons for this phenomenon? How should we observe the development of the Chinese economy and capital market? How should we evaluate the significance of the establishment of the Beijing Stock Exchange?2023yearAshareIPO listingWhat is the outlook for the market? Can the phenomenon that has led global capital markets continue?
Frost & SullivanFrost & SullivanMr. Lu Jing, Partner and Managing Director of Frost & Sullivan Greater China, was interviewed below: "Observer Network" interview, jointly discussedADevelopment trend of the stock market.
Observer Network
Q
2022year,AshareIPO listingBoth in terms of volume and financing amount, it far exceeds European and American markets. Shanghai Stock Exchange, Shenzhen Stock ExchangeIPO listingThe financing amount ranks first and second globally. Meanwhile, the US marketIPO listingThe amount of funds raised has decreased90%Above, NASDAQ and NYSE10For the first time in a year, it has exited among the top five global markets. What do you think are the reasons for this phenomenon?
As of2022year12month31dayAshareIPO listingNumber of enterprises424Home, with a total fundraising amount of5,869.66RMB 20 billion, including the Shanghai and Shenzhen stock exchangesIPO listingThe fundraising amounts reached3,588.91yuan2,115.16Yuan, ranking first and second globally. In contrast,2022US capital market in 2019IPO listingMarket financing volume has declined90%.2022yearAshareIPO listingThe financing amount far exceeds that of the United StatesIPO listingbyAshareIPO listingSubstantial growth in the United StatesIPO listingThe shrinkage also causes:
（1The implementation of the registration-based system reform in our country has driven the performance of the Sci-tech Innovation Board and the Growth Enterprise Market. And the Sci-tech Innovation Board and the Growth Enterprise Market, in turn,AshareIPO listingIt plays an important role. In terms of the total fundraising amount,2022Annual Sci-Tech Innovation Board and Growth Enterprise MarketIPO listingTotal raised fundsATotal amount of share-raised funds73.54%has becomeAshareIPO listingThe main force in the market.
The registration-based system reform refers to the issuance review institution only examining the registration documents provided by the issuer, confirming whether they fulfill the obligation of information disclosure without making substantive judgments on the information. The reform of the registration-based system has provided a more convenient channel for enterprises to go public. Subsequently, the Sci-tech Innovation Board and the Growth Enterprise Market were launched2018year11month and2020year4After the pilot was implemented in [month], the State Council further decided that2020year10In January, the 'Opinions on Further Improving the Quality of Listed Companies' were issued, proposing to 'fully implement and phase out the securities issuance registration system, supporting high-quality enterprises to go public'. Since the implementation of the registration-based system reform, a total of900The listed company completed its issuance under the registration-based system, raising a total of more than one trillion yuan. The reform of the registration-based system has contributed to the development of China's capital market, including the Science and Technology Innovation Board and the Growth Enterprise Market.AshareIPO listingIt played an important role.
（2Meanwhile, due to geopolitical conflicts, intensified US inflation, and multiple rounds of interest rate hikes by the Federal Reserve, most companies planning to list on the US stock market have postponed their listing plans.
2022At the beginning of the year, escalating geopolitical conflicts led to a continuous rise in market risk aversion, resulting in large-scale selling across global stock markets including the US stock market. At the same time, financial sanctions, technological sanctions, and energy sanctions imposed by the US against Russia have also become unstable factors in the US stock market.
In addition,2022Inflation in the United States intensified in 2021,7The monthly inflation rate is as high as9.1%, for succeeding1981US near after the New Year40The peak of development within the year, despite the latest announcements in recent days between China and the US11The monthly inflation rate has fallen to7.1%Better than market expectations, but the inflation rate remains at2%The long-term inflation targets vary significantly. As the inflation rate has remained high for a long time, the Federal Reserve has raised interest rates multiple times this year in an attempt to control the sharp increase in inflation, which occurred3month,5month,6month,7month,9month and day11Monthly interest rate hike0.25%,0.5%,0.75%,0.75%,0.75%The interest rate target range has been met3.75%-4%The significant increase in interest rates directly raises various capital costs for enterprises, affecting their profitability. At the same time, due to geopolitical reasons and the slowdown in the development of internet companies, the number of Chinese companies going public in the US has significantly decreased. Under multiple influencing factors, this has led to2022USEXIPO listingTotal raised funds2021A year-on-year decline as high as93.2%.
Q
2022yearATop 10 before sharesIPO listingmiddle,7I'm from the Sci-Tech Innovation Board.1Originating from the ChiNext, and thus the Sci-tech Innovation Board and ChiNext have becomeAshareIPO listingThe market's main players, including semiconductor manufacturing, artificial intelligence and business software, robotics companies, and other enterprises developing high-end technologies, have gone public one after another. How can we observe the development of the Chinese economy and capital markets from these phenomena?
With China's continuous encouragement of the listing of 'hard technology' enterprises, since the establishment of the Sci-tech Innovation Board and the Growth Enterprise Market, they have becomeAshareIPO listingThe main force,2022annual double-boardIPO listingThe total amount of funds raised has accounted forAshareIPO listingThe total fundraising amount exceeds 70%, and it will continue to promote the development of outstanding 'hard technology' enterprises in China's capital market through the Sci-tech Innovation Board and Growth Enterprise Market in the future, playing an increasingly important role.
The original intention of the establishment of the Sci-Tech Innovation Board is to adhere to facing the world's scientific and technological frontiers, the main battlefield of the economy, and major national needs. It mainly serves as a more convenient listing channel for technology innovation enterprises that meet national strategies, break through key core technologies, and have high market recognition. It particularly supports high-tech industries and strategic emerging industries such as new-generation information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, as well as biomedicine.
Recently, the Shanghai Stock Exchange has once again emphasized its commitment to maintaining the 'hard technology' positioning of the Sci-tech Innovation Board, encouraging and supporting more 'hard technology' enterprises to go public, and creating a favorable market ecosystem that supports technological innovation. Therefore, in the future, there will be more outstanding semiconductor manufacturing companies, artificial intelligence companies, robotics companies, and other 'hard technology' enterprises listed on the Sci-tech Innovation Board, continuously driving the healthy development of China's economy and capital market.
Q
Since the launch of the board one year ago, there have been a total of123The parent company is listed on the Beijing Stock Exchange, with a proportion of small and medium-sized enterprises77%Proportion of private enterprises86%,80%The above listed companies belong to strategic emerging industries or advanced manufacturing sectors. How should we evaluate the significance of the establishment of the Beijing Stock Exchange?
The original intention of the establishment of the Beijing Stock Exchange was to better support the innovative development of small and medium-sized enterprises. Building on the New Third Board (National Equities Exchange and Quotations for Small and Medium-sized Enterprises), it aims to deepen the reform of the New Third Board and accelerate the construction of a trading platform mainly for innovative small and medium-sized enterprises, to meet the internal needs of supporting the development and growth of these enterprises in China.
At the same time, the establishment of the Beijing Stock Exchange is also aimed at improving China's multi-level capital market system, presenting a tripartite balance. In terms of positioning, the Beijing Stock Exchange will be different from the Shanghai Stock Exchange and the Shenzhen Stock Exchange, serving the Beijing-Tianjin-Hebei region as well as the entire northern region, with an emphasis on innovative small and medium-sized enterprises.
Since the launch of the market one year ago, in terms of results, the establishment of the Beijing Stock Exchange has fully achieved its original intention. As of2022year11months in total130The parent company was listed on the Beijing Stock Exchange.IPO listingRaising over 10 billion yuan, with SMEs accounting for a proportion77%Proportion of private enterprises86%Over 80% are concentrated in strategic emerging industries and advanced manufacturing. According to the Shenwan First-Class Industry Classification, listed companies mainly focus on industries such as machinery and equipment, power equipment, electronics, and basic chemicals.
Overall, the establishment of the Beijing Stock Exchange has fully achieved its original intention. It provides a inclusive financial path to the capital market for the development of medium and small enterprises in China, which are characterized by strong innovation capabilities, rapid growth, and substantial technological achievements. It also provides a favorable environment for the healthy development of these enterprises.
Q
China's epidemic prevention and control measures are being continuously optimized, and more economic stimulus policies are expected to be implemented. Supervision also states that the conditions for fully implementing a stock issuance registration system are basically in place. In this context, what do you think?2023yearAshareIPO listingWhat is the outlook for the market? Can the phenomenon that has led global capital markets continue?
2022Since the beginning of this year, affected by complex changes in international situations such as the Russia-Ukraine conflict and Sino-US relations, as well as repeated impacts from the COVID-19 pandemic, China's economic development has faced certain pressures. The 'troika' driving economic growth—investment, consumption, and exports—has all been challenged to varying degrees. However, since the comprehensive group of the State Council's Joint Prevention and Control Mechanism announced the 'Notice on Further Optimizing the Implementation of COVID-19 Prevention and Control Measures' based on the new characteristics of the pandemic's development, The new measures will not only ensure people's normal work and life, but also lay a solid foundation for China's future economic development. Consumption is expected to rebound positively, and transportation and tourism will gradually return to normal. It is anticipated that the psychological expectations of the public towards China's economic development will show positive changes after the adjustment of epidemic prevention policies.
In addition, the registration-based system is a key measure for developing direct financing, especially equity financing, and it is also a major reform aimed at improving the market-oriented allocation of factors. After nearly three years of pilot implementation, the registration-based system structure centered on information disclosure has initially withstood market tests. The conditions for fully implementing a stock issuance registration system are now basically in place. In the future, with the full and stable implementation of the registration-based IPO system reform, includingAMain board stocks, etc.IPO listingThe environment will embrace a healthier development environment, therefore it is expected2023yearAEquity will continue to lead global capital markets.
*This interview was published on "Observer Network", authored by Li Zexi, with the original title being " Opening the first US office allows the Hong Kong Stock Exchange to attract from the USIPO listingHmm? >> (Click on "Read the Original Article" at the end of the text to view the full report).
