Despite a sharp decline in US listings, over 50 mainland Chinese companies are currently seeking approval to launch share sales in the American market.
Key facts
- •Only two mainland Chinese companies debuted on US exchanges in the first half of the year.
- •The US$59.5 million raised in the first half of 2024 represents a five-year low for deal volume and proceeds.
- •More than 50 mainland Chinese firms were awaiting Beijing's approval for US listings as of July.
- •Lotus Asset Management identifies New York's deep liquidity and access to global institutional investors as primary drivers for the continued interest.
Mainland Chinese companies continue to pursue US initial public offerings despite increased geopolitical tensions and regulatory challenges. While US market debuts have reached a five-year low, a significant pipeline of firms remains committed to seeking listings in New York.
By the numbers
Current Market Activity
According to a June report by accounting firm EY, only two mainland Chinese companies completed US debuts during the first half of the year. These listings raised a combined total of US$59.5 million, marking the lowest volume and proceeds for such deals in five years.
Future Pipeline and Motivations
Data from the China Securities Regulatory Commission indicates that as of July, more than 50 mainland companies were awaiting approval from Beijing to proceed with US share sales. Hong Hao, chief investment officer at Lotus Asset Management, stated that a US listing is still viewed as highly prestigious. He added that New York remains the world's largest capital market, providing deep liquidity and access to a global pool of institutional investors that other regional exchanges cannot easily match.
Advertisement
This article was independently rewritten by ManyPress editorial AI from reporting originally published by SCMP Business.
