China's A-Share Market Will Take on Fewer IPOs Next Year, Deloitte Forecasts
Xie Danmin
/SOURCE : Yicai
China's A-Share Market Will Take on Fewer IPOs Next Year, Deloitte Forecasts

(Yicai Global) Dec. 21 -- After welcoming a multitude of initial public offerings this year, China's A-share market is likely to slow next year due to stricter regulatory requirements, Deloitte & Touche forecast in a recent report.

Some 436 companies have gone public on the mainland so far this year, accumulating CNY230.4 billion (USD35 billion) in funding. This compare with 227 firms landing CNY150 billion in full-year 2016.

However, Deloitte believes that growth will slow next year as China ramps up its approval process. It forecasts between 320 and 380 companies will go public in 2018 to raise between CNY170 billion and CNY200 billion, with high-tech and manufacturing companies remaining the most likely to list.

China has tightened regulation and looked to smooth its IPO application process this year, which has led to a number of companies take their listing elsewhere, especially those in the fintech sector.

The number of companies pending IPO review has fallen by over 200 over the past year, an unidentified partner at Deloitte said, adding that the 'congestion' of firms looking to list has almost come to an end. The review process will only take about 15 months from the date of application, he added.  

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Keywords: Deloitte & Touche , IPO , A-Share