China IPO fundraising poised to spike as govt pushes debt reduction

Shanghai

FUNDRAISING from Chinese domestic initial public offerings in 2017 is expected to jump to the highest level in six years, as the government turns to the stock market to help companies reduce debt.

The volume of first-time share sales in mainland China is forecast to rise 50 per cent to about 225 billion yuan (S$46.6 billion), according to the median estimate in a Bloomberg survey of analysts. The increase would follow a surge in the fourth quarter, when the amount raised from A-share IPOs was more than six times a year earlier, data compiled by Bloomberg show.