Technology, media, and telecommunications companies rebound in Q2

The number of listings and value of funds raised by Chinese technology, media, and telecommunications (TMT) companies rebounded in the second quarter after a relatively weak performance in the first quarter.

The number of listings climbed to 40 from 26 in the period three months earlier and the value of funds raised jumped to 71.4 billion yuan (US$9.9 billion) quarterly, driven by the STAR and ChiNext markets.

"Recent policies reviving the stock market introduced by the China Securities Regulatory Commission and further stimulus measures will guide the long-term development of this market, and innovative technology companies will welcome new business opportunities," said PwC China TMT industry leader Gao Jianbin.

In the first half, the total number of listings in the TMT sector fell from 124 a year earlier to 66, and and the financing value decreased to 82.9 billion yuan from 133.5 billion yuan a year earlier.

The domestic capital market remained the main listing destination for TMT enterprises from the Chinese mainland, with 39 percent and 20 percent of businesses going public on the STAR and ChiNext markets respectively. The STAR Market secured 60.6 billion yuan in financing, accounting for 74 percent of the total over the period.

The first half of 2023 saw 19 Chinese mainland companies listing on the US stock market, bringing total financing size to US$473 million.

Six domestic TMT enterprises raised a total of US$299 million, contributing over 60 percent of the overseas listing proceeds, as the overseas bourses remain attractive for science and technology enterprises.