Chinese companies are leading the global IPO rush amid a 'flight from uncertainty'

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Greater China stock exchanges accounted for 45% of global IPOs in the first three quarters of the year, according to CNBC analysis of data from EY.

One-fifth of global public listings in the first nine months of this year, or 180 of them, took place on the Shanghai Stock Exchange, according to an Ernst & Young report. That made Shanghai the top market, surpassing second-place Nasdaq's 119 deals. Add in 115 IPOs in Shenzhen and 99 in Hong Kong, and greater China stock exchanges accounted for 45% of global IPOs in the first three quarters of the year, according to CNBC analysis of data from EY.

The IPO comes after 23 companies from mainland China already went public in the U.S. in the first nine months of this year, which accounted for half of cross-border listings in the U.S. during that time, according to EY. Ma pointed to the potential resurgence of Covid-19 and a drag on the global economy and capital markets, as well as political risks. Businesses around the world are waiting for the U.S. presidential election next week which will have implications for international affairs.

"No Chinese company, especially the tech startups, can say with certainty that they are spared this US-China digital war," he said.On the other side of the Chinese IPO trend are new regulations from Beijing that make it easier for companies to list: a registration-based system rather than one subject to regulatory approval.

 

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