According to the report, the number of US-listed initial public offerings from mainland China increased by 31 from January to June, with the IPOs raising $8.82 billion.
The first day return rate of the so-called China concept stocks listed on US exchanges was 131% on average, also a multi-year high, said EY. The funds raised by Chinese IPOs on the New York Stock Exchange amounted to 63% of the total IPO funds in the same exchange.
China concept stocks have performed well in the first six months despite Washington passing the Holding Foreign Companies Accountable Act last year and issuing recommendations to ban Chinese firms from US exchanges unless they complied with US accounting standards.
Stable and sound macroeconomy in China and the innovative business environment have increased the attractiveness of Chinese companies on the US market, experts told China Daily. The newspaper also cited EY’s IPO leader in China, Terence Ho, who said the number of companies queuing for IPOs will remain high in the second half of this year.
“For cross-border listing, companies need to consider risks brought by changes in geopolitics and local policies and be well prepared to seize opportunities,” he added.
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