While the global equity market is in turmoil and many companies are postponing their IPO plans, China’s IPO market seems to be flourishing. 

As of September 2022, China’s IPO market raised $57.8 billion, according to Bloomberg. In September alone, the top 5 IPOs in China raised much more than the top 5 IPOs in the US. 

When you take a closer look, two of the top 5 IPOs in September were in the new energy sector, a big focus of the Chinese government. Pharmaceutical companies, precision manufacturing, and battery components were the other industries that saw companies going public.

The Chinese government is focusing a lot on driving deep tech – much of the fundraising in public and private markets are driven by state-affiliated capital. However, will they catch up with the US anytime soon?

In the below infographic, we draw a comparison between the top five IPOs in the US and China (by fund raised):

china IPO

Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at hello@mworks.asia.