**Significant Improvement in New Stock Profit Effects**
As the third quarter nears its end, despite the complex and volatile global macroeconomic environment this year, the A-share IPO market has demonstrated strong resilience and vitality, with the Shanghai Stock Exchange ranking fifth globally in fundraising amounts.
From an issuance pace perspective, A-shares issued 75 new stocks in the first three quarters, compared to 69 in the same period last year, maintaining steady growth momentum. In terms of fundraising scale, IPOs in the first three quarters collectively raised 74.372 billion yuan, an increase of 26.5 billion yuan year-over-year, primarily driven by Huadian New Energy Group Corporation Limited (600930.SH) raising 18.171 billion yuan. Notably, the Hong Kong Stock Exchange issued 66 new stocks in the first three quarters, with fundraising exceeding 180 billion Hong Kong dollars, topping the global fundraising rankings.
The A-share bull market continued throughout the year, with new stock profit effects significantly enhanced. The aforementioned 75 new stocks averaged a 244% gain on their first trading day, an improvement of nearly 100 percentage points compared to the same period last year, with no new stock breaking its IPO price this year. Some stocks with both thematic appeal and strong performance have repeatedly hit new highs after listing, gaining over 10 times their IPO prices.
**A-Share IPO Fundraising Exceeds 70 Billion Yuan in First Three Quarters**
With IPO review and issuance gradually returning to normalization this year, both the number of new stocks and fundraising amounts in the first three quarters increased compared to the same period last year.
Beijing Hcrt Electrical Equipments Co.,Ltd. (301668.SZ) will be listed on September 26, while Ickey (Shanghai)Internet And Technology Co.,Ltd. (301563.SZ) and Guangzhou Ruili Kormee Automotive Electronic Co.,Ltd. (001285.SZ) are also expected to be listed and traded this month. These three new stocks have a combined IPO fundraising amount of 2.928 billion yuan. Including these three new stocks, the total fundraising amount for new stocks in the first three quarters is approximately 77.2 billion yuan, an increase of about 29.4 billion yuan compared to last year.
Looking at the 75 new stocks already issued, a significant characteristic of this year's IPO market is the fundraising structure showing a "one dominant player, small average" pattern, with the average and median fundraising amounts being 992 million yuan and 550 million yuan respectively. Huadian New Energy Group Corporation Limited raised 18.17 billion yuan in its IPO, becoming the only mega-scale new stock of the year, accounting for 24.4% of total fundraising.
Twelve new stocks raised over 1 billion yuan, with five raising over 2 billion yuan. Zhongce Rubber Group Co., Ltd. (603049.SH), Heilongjiang Tianyouwei Electronics Co.,Ltd. (603202.SH), Suzhou Inovance Automotive Co.,Ltd. (301656.SZ), and Beijing E-Town Semiconductor Technology Co.,Ltd. (688729.SH) raised 4.066 billion yuan, 3.74 billion yuan, 3.601 billion yuan, and 2.497 billion yuan respectively, ranking second to fifth. Compared to last year, Beijing E-Town Semiconductor Technology Co.,Ltd.'s fundraising amount exceeded that of Grandtop Yongxing Group Co.,Ltd. (601033.SH) (2.43 billion yuan), which had the highest fundraising amount in the same period last year.
Sixty-two new stocks raised less than 1 billion yuan, with 30 raising less than 500 million yuan. Five new stocks including several from the Beijing Stock Exchange raised less than 200 million yuan.
By listing board, the ChiNext led in IPO numbers with 27 new stocks, collectively raising 19.534 billion yuan, with Suzhou Inovance Automotive Co.,Ltd., listed on September 25, having the highest fundraising amount. The Shanghai Stock Exchange main board led in fundraising amounts, reaching 37.284 billion yuan. The STAR Market issued 8 new stocks, raising 8.117 billion yuan.
Additionally, Deloitte China's Capital Markets Services recently released data showing that the Shanghai Stock Exchange ranked fifth globally in IPO fundraising for the first three quarters with 25 new stocks and 45.4 billion yuan in fundraising.
The Hong Kong Stock Exchange topped global IPO fundraising rankings, issuing 66 new stocks in the first three quarters with fundraising exceeding 180 billion Hong Kong dollars. Four of the top five fundraising companies were A-share listed companies going public in Hong Kong. Among them, CATL (03750.HK) raised 41 billion Hong Kong dollars, ranking first globally in new stock fundraising for the first three quarters, while HENGRUI PHARMA (01276.HK), SANHUA (02050.HK), and HAITIAN FLAV (03288.HK) raised 11.4 billion, 10.7 billion, and 10.6 billion Hong Kong dollars respectively.
**New Stocks Average Nearly 2.5x First-Day Gains**
While the number of new stocks this year increased only slightly compared to the same period last year, the "profit effect" of new stocks has undergone a qualitative leap. Data shows that the 75 new stocks averaged a first-day gain of 244.4%, with a median of 229.06%, representing a doubling of the median gain compared to the same period last year (113.5%).
Moreover, new stocks this year have changed the past pattern of "first-day peaks," as of the close on September 25, the average and median gains of the 75 new stocks' latest closing prices compared to their IPO prices were 254% and 190% respectively. Investors could still achieve excess returns even if they didn't sell their allocated shares on the first day and held them until now.
With sufficient luck and patience, some new stocks have even provided subscribers with 5x or even 10x+ returns. As of September 25 close, seven new stocks have gained over 5x their IPO prices, with Beijing Hyperstrong Technology Co.,Ltd. (688411.SH), Arashi Vision Inc. (688775.SH), and Jiangxi Jiangnan New Material Technology Co.,Ltd. (603124.SH) being typical representatives.
Beijing Hyperstrong Technology Co.,Ltd. has seen its stock price soar since listing on the STAR Market on January 27, reaching a new historical high of 280 yuan on September 25, a cumulative gain of over 15x from its IPO price of 19.38 yuan. Arashi Vision Inc. debuted on A-shares on June 11 with a first-day close up 2.7x. After sideways movement for a month and a half, the stock suddenly surged, gaining over 100% in 18 trading days starting August 11, reaching a historical high of 377.77 yuan. It currently trades at 312.3 yuan, up 5.6x from its IPO price of 47.27 yuan. Additionally, Beijing Stock Exchange new stock reached a historical high of 99.85 yuan in March, a cumulative gain of 13.42x from its IPO price of 6.92 yuan.
These top-performing new stocks are generally positioned in this year's hot sectors. Beijing Hyperstrong Technology Co.,Ltd. is primarily engaged in energy storage system product R&D, production, and sales, with lithium battery leaders Contemporary Amperex Technology Co., Limited (300750.SZ) and Eve Energy Co.,Ltd. (300014.SZ) as partners. Influenced by the high growth in domestic new energy storage installation capacity in the first eight months of this year, the energy storage sector has recently attracted hot money, with leading stocks Sungrow Power Supply Co.,Ltd. (300274.SZ) and Contemporary Amperex Technology Co., Limited repeatedly hitting new highs. Beijing Hyperstrong Technology Co.,Ltd. has also become a favored target, surging 119.14% since September.
Industry analysis suggests that overall market environment recovery, increased risk appetite, and excellent quality of new stocks are factors behind the significant improvement in new stock profit effects this year. Compared to last year's subdued performance due to multiple constraining factors, major A-share indices have stabilized and recovered this year, with the STAR 50, ChiNext Index, and Beijing Stock Exchange 50 rising over 50% or close to 50% year-to-date. As investor confidence strengthened and risk appetite increased, naturally higher valuation premiums were given to new stocks with "freshness" and growth potential.
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