The Chinese tech IPOs will continue to bloom, well into 2019

China tech IPO boom to continue for at least another year, according to China Renaissance CEO and Founder Bao Fan
This continued boom in Hong Kong is following a record number so far this year.

“The [IPO] window is open in Hong Kong, and will stay open,” 
Bao, whose investment bank has built a reputation as a key adviser on Chinese tech IPOs and M&As, said in an interview.

One of the core reasons for the ongoing boom are the changes placed during April for Hong Kong’s listing rules. The new rules have authorized companies with dual class shares to list and made the process more accessible for pre-profit biotech firms looking to launch their IPOs, not to mention the development stage of the Chinese companies.

“In the past few years, many of these firms have made great progress under the support of financing from private equity funds. They have matured and reached the IPO stage.”

During September, 13 Chinese tech and relevant companies made their stock market debut in Hong Kong for 2018, accumulating a combined 6.86 billion USD, resulting in the highest numbers and values since 1995, according to Dealogic data records.

Simultaneously, 15 Chinese tech and related IPOs were launched in the US market, matching the 2015 records once more.

Among the most promising start-ups to list in Hong Kong in 2018 is the smartphone maker Xiaomi, which raised 5.4 billion USD in July, and the food delivery service app Meituan Dianping, which raised 4.2 billion USD around the same time-frame. In addition, Pinduoduo, which is an online discounter, accumulated 1.6 billion USD from its US listings in July.

China Renaissance was a key adviser advised on both the Meituan and Pinduoduo deals.

Even more big IPOs are in the pipeline, including ride-sharing giant Didi Chuxing, news aggregation app Jinri Toutiao, and video-sharing app Kuaishou.

“There are still many more next year”