ILLUSTRATION. Chinese yuan money. China continues to deliver new billionaires from the results of the IPO. REUTERS / Thomas White / Illustration / Photo Files GLOBAL BUSINESS WEEK AHEAD
Reporter: Ferrika Sari | Editor: Tendi Mahadi
KONTAN.CO.ID – BEIJING. The corona pandemic (Covid-19) did not prevent companies from taking the floor on the Chinese stock exchange (IPO). In fact, the stock market in China continues to squirm until June 2020.
A total of 118 companies go public in Shanghai and Shenzhe this year. They collected about US $ 20 billion of IPO funds until June 2020 or more than double the realization last year.
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“Covid-19 has an insignificant impact on IPO activities in China. New shares in China usually jump on the day of debut. This develops a group of investors with strong tastes,” said China IPO Chief Terence Ho, quoted by Bloomberg Friday (24 / 7).
On the China stock exchange, listing newcomers often jumped to the 44% limit on their first day of trading. Shanghai has become a place listing number one in the world, beating New York and Hong Kong.
As is known, selling shares to the public has long been a profitable way for corporate owners in China to collect their wealth coffers.
Bloomberg noted, throughout the last 2020, Chinese billionaires had a combined wealth of US $ 70 billion in mid-July. Most of the health care and technology industries, some sectors that have done their best during the pandemic.
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“We expect companies from industries not affected by corona to continue to dominate the IPO until next year. For example, from the technology ecosystem, health services and education online, “said Vice Chairman and Head of China in UBS Global Banking John Lee.
Chinese businessmen became the second largest billionaire group in the world in 2018, overtaking Russia, with their wealth more than tripling in five years to US $ 982.40 billion, according to UBS Group AG’s November report.
