China's IPO volume rose in 2017; average size dropped

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China saw a 409 IPOs this year on the Shanghai and Shenzhen stock exchanges - a record number - raising 31.61 billion US dollars, an increase of 30 percent compared with 2016, data from Dealogic showed.

About 56 percent of the country’s total funds were raised in Shanghai, making it Asia’s top listing destination in 2017.

But the average deal size on the two exchanges has become smaller, as the securities regulator has tightened liquidity.

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The largest A-share listing this year was the 620 million US dollar share offering of Hangzhou Caitong Securities Co., Ltd., while the world’s largest IPO was US tech company Snap’s 3.9 billion US dollars.

At the same time, the regulator streamlined the review process in 2017, boosting its IPO approval pace.

Analysts believe that China’s continued efforts to deleverage the macro economy and curb financial risks next year will cause bank lending to shrink, subsequently steering companies with financing needs to the capital market.

In addition, the inclusion of China’s A-shares in the MSCI emerging market index will also inject buzz to the market.

Around 25 Chinese companies chose to debut in the US this year, tapping 4 billion US dollars from the market, up 83 percent year-on-year, according to EY. One of the attractions of the US stock market are dual-class shares, which allow founders and executives of tech and fintech companies to control terms of the company in excess of the financial stake.