The Chinese Communist Party is trying to create the illusion of a recession-proof stock market. Initial public offerings (IPOs) of Technology, Media and Telecommunications (TMT) companies on the Chinese mainland remained active in the first half of 2020 despite setbacks, said global auditing & consultancy firm PwC.
The number of listed Chinese mainland’s TMT companies came in at 55 during this period, down from 74 listings in the second half of 2019, with total IPO proceeds standing at 97.2 billion yuan ($14 billion ).
To prepare for the “forced” delisting on the US stock exchanges, some Chinese companies filed secondary listing in Hong Kong to attract international investments.
JD.com and NetEase raised 27.5 billion yuan and 22.1 billion yuan for their secondary listing in Hong Kong, respectively.
China Resources Microelectronics got listed on the STAR market in Shanghai raising 4.3 billion yuan.
Together, these three companies were the largest TMT IPOs on the mainland in the first half of the year.