Rebound seen in investor sentiment for IPOs

Investor sentiment is projected to progressively rebound in the second half for the initial public offerings, with more focus on companies with core technology and stronger profitability.

In the first half, ChiNext and Shanghai Main Board have been the top contributors in terms of the number of deals and proceeds for domestic listings amid an overall slowdown of IPOs in the A-share market, according to EY's latest review of the global IPO status.

According to their assessment, the A-share market had 44 firms listed as of June 12, generating 32.9 billion yuan (US$4.6 billion) in proceeds.

Companies in the Yangtze and Pearl river deltas were the key driving forces for the IPOs, with the top five regions by the number of IPO deals being the provinces of Jiangsu, Guangdong, Zhejiang, Hubei, as well as Shanghai.

It adds that the A-share market is showing signs of picking up, and IPO activities are projected to recover gradually due to a favorable policy environment and the healthy development of the capital market.

Regulatory support for high-quality technology companies will stay robust and grow more specific; hence, it believes eligible technology-oriented companies will be more likely to commence their IPO applications sooner.

In the first half, IPOs on China's mainland and Hong Kong accounted for 14 percent and 12 percent of the world's total number of IPOs and proceeds, respectively, due to an overall cooling down of listing activity on the local exchange.

Globally, 532 firms completed listings in the first half, and total proceeds stood at US$51.7 billion, down 15 percent and 17 percent, respectively, compared with the same period last year.