Thomson Reuters 1Q2011 Asia and China Equity Capital Markets Summary
• Asia Pacific (excluding Japan) region continues to hold the global top spot for IPOs this quarter, with IPO proceeds across the region reaching US$24.3 billion, 54% of the global IPO total. Last year at this time, Asia’s IPOs accounted for 46% of the global volume.
• While some industry experts point to a spillover effect from the robust equity volumes in 2010, Asia’s first quarter 2011 equity offerings have increased by 3.5% from the same period last year, largely due to the boost in Convertible offerings by 130%. The largest convertible offering so far is by Sinopec, raising US$3.5 billion for the energy conglomerate. Overall, Asia ex Japan ECM volumes for first quarter total US$53.3 billion from 393 issues, marking the highest first quarter start for ECM activity on record.
• China’s 2011 First Quarter equity capital markets volume ranks second globally, with Chinese companies raising proceeds of US$28.2 billion (CNY 397 billion), of which A-share offerings encompass 81% or US$23 billion (CNY 151 billion). Domestic A-share IPOs reach US$14 billion (CNY 92 billion) this quarter, 61% of the A-share total.
• Notably, the Shenzhen stock exchange has registered the highest activity level for China equity offerings so far this year, with US$12.8 billion of capital raised, 45% of total domestic China equity issuance. Last year at this time Shanghai had top spot with 45% of total A-share issuance.