A new report by the British Financial Times revealed how Chinese companies have taken the top spot in global equity offerings.
The report added that when a private company sells shares to the public for the first time, this process is known as IPO.
The IPO means that the company’s ownership moves from private to public ownership. For this reason, the IPO process is sometimes referred to as going public.
The report stated that as a result of the disastrous year 2022, a set of new listings in the world’s largest economy failed to raise funds in the IPO market. More than five times more money was raised in China than in the United States this year. and the recent turmoil in the U.S. banking sector has dashed hopes for a rebound in Wall Street companies.
Given the collapse of European markets and the simpler new listing requirements of the Shanghai and Shenzhen exchanges, Asia, especially China, emerged as the world’s dominant IPO market this year.