China beats the world in IPOs
The record breaking initial public offering of Industrial and Commercial Bank of China (ICBC) has powered China’s stock exchanges ahead of those in UK and US as the world’s biggest source of capital for new listings.
Till the October end this year Chinese stock exchanges raised a combined $43.1 billion, more than the exchanges in US and UK. The LSE and AIM exchange of UK raised a combined $ 40.5 billion and the exchanges in US raised a combined $ 38.3 billion. From the statistic it is clear that Chinese stock exchange is far ahead of the two developed countries exchange.
It has to be noted that Chinese exchange were not the highest raiser of fund in the world market. But the situation has changed now. One of the reason for this is the record breaking IPO of ICBC. It raised $21. 3 billion which is a world record. This year many state owned companies went for IPO in China. So this successful raising of fund can be considered as a matter of chance from one angle. Because around 50 percent of the fund was raised by a single company. Again many government owned companies went for IPO. These are highly successful company with the potential to grow further.
But one more thing is that now Chinese companies will not run to other countries to raise fund through ADR or GDR. Because there own stock exchange is able to give them right value with the ability to raise fund to the extent of $21 billion.
Indian exchanges should try to follow the Chinese exchanges. Because many of the Indian companies are moving to NYSE, NASDAQ, LSE to get a fare valuation and raise the desired fund. If they will get the right amount of fund in India they will not move to the western countries.
posted by Mohammad Imran at 10:14 PM
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4 Comments:
simply because the amount of money raised,the stock exchanges can't be called superior. if you look at the over all situation of financial market china has still a long way to go to become world's top financial market. the survillence system, the technological aspect inida is way ahead of china.
I do agree with you. I have mentioned in it that it was a one time affair. We can not say it superior in all aspects but interms of raising money from the market it is superior to Indian stock exchange.
ok. but it's more of the decision of the respective companies who have raised, rather than the stock exchanges.so the term is bit confusing.
I agree with you my friend but I think you know that this is the world record in terms of the money raised in a single listing. This record is not in the name of LSE, NYSE or NASDAQ. So don't you think that the credit also goes to the stock exchange along with the listed company.
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