Chinese IPOs drying up as bubble bursts

December 11th, 2008 - 12:57 pm ICT by ANI  

Beijing, Dec.11 (ANI): Activity in initial public offerings in China has fallen to a three-year low, according to a report released by market researcher Zero2IPO Group.
The amount of money raised by Chinese companies in the first 11 months of the year through IPOs fell 70 percent over last year to 21.8 billion dollars, the China Daily quotes the report, as saying.
The number of IPOs and total capital raised also touched three-year lows, falling 44.3 percent and 75.3 percent respectively year-on-year.
Zero2IPO said 113 Chinese companies were listed in domestic or overseas markets from January to November, with average raised capital of 193 million dollars each.
In overseas markets, the number of Chinese IPOs dropped from 98 a year ago to 37 in the first 11 months, with capital raised falling 46.4 percent to 6.922 billion dollars.
In the domestic market, the number of IPOs fell by 27.6 percent to 76 in the period, with capital raised dropping about 72.6 percent to 14.91 billion dollars.
Zero2IPO CEO Ni Zhengdong had warned in November that both entrepreneurs and investors could be entering a tough period. (ANI)

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