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China’s tech, media and telecoms IPOs fall in first half of 2023, but new capital market policies and nation’s economic recovery to boost sector’s outlook: PwC report

  • There were 66 mainland TMT enterprises that went public in the first half of the year, down from 124 in the second half of 2022
  • Domestic exchanges were TMT firms’ main IPO venues, with 39 per cent listed in Shanghai’s Star Market and 20 per cent in Shenzhen’s ChiNext Market

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Total financing raised by mainland technology, media and telecommunications enterprises in the first half of this year dropped to US$11.4 billion), compared with US$18.3 billion in the second half of 2022. Image: Shutterstock
Xinmei Shen
Initial public offerings (IPOs) by mainland Chinese technology, media and telecommunications (TMT) companies declined in total number and value of funds raised in the first half of this year, according to PwC, but new capital market reform policies and the country’s economy recovery are expected to boost this sector’s outlook.
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There were 66 mainland TMT firms that went public in the first six months of the year, down from the 124 that completed IPOs in the second half of 2022, consulting giant PwC said in a report published on Thursday.

Total financing raised by mainland TMT enterprises in the first half of this year dropped to 82.9 billion yuan (US$11.4 billion), compared with 133.5 billion yuan in the second half of last year.

Domestic exchanges, according to PwC, remained the main listing destination for most of these TMT firms, with 39 per cent and 20 per cent of IPOs conducted in Shanghai’s Nasdaq-style Star Market and the ChiNext Market in Shenzhen, respectively.
Shanghai’s Nasdaq-style Star Market, was the preferred domestic listing destination for many mainland Chinese technology, media and telecommunications enterprises in the first half of this year. Photo Reuters
Shanghai’s Nasdaq-style Star Market, was the preferred domestic listing destination for many mainland Chinese technology, media and telecommunications enterprises in the first half of this year. Photo Reuters
The sluggish state of mainland TMT public listings in the first half of this year reflected the waning confidence in China’s economic recovery efforts and some lingering uncertainty over the tech industry’s regulatory crackdown, which is widely considered to have run its course after Beijing slapped Ant Group with a 7.1 billion yuan fine in July.
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In spite of that situation, China was the world’s most active market for IPOs in the first half of the year, accounting for almost half of global fundraising, as Beijing unleashed capital market reforms that made it easier for companies to sell new shares.
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