Chinese companies favour Shanghai IPOs, survey finds

The desire for domestic brand exposure, a gradually maturing market and cost benefits make a domestic listing appealing to Chinese companies, Evalueserve finds.

For a long time, an overseas listing has been an aspiration of Chinese companies. However, foreign exchanges are losing their appeal due to lower liquidity and more private companies in China are likely to prefer a share sale in the domestic market in coming years, a recent survey has found. This will increase the proportion of Chinese initial public offerings in the domestic market.

About 76% of private companies surveyed indicated an interest in a domestic listing versus an overseas one, which is a higher portion than the 63% of total Chinese IPOs that were launched on a domestic exchange in the past five years, global research and analytics firm Evalueserve found.

The firm...

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