(Yicai Global) Jan. 19 -- Economic growth in China in recent years has brought very good opportunities to the US capital market, said Fang Xinghai, vice chairman of China Securities Regulatory Commission (CSRC), while speaking with Tom Farley, New York Stock Exchange (NYSE) chairman, at the Davos Forum 2017.
Long IPO wait lists are an indication that relevant reforms in China stand to be furthered. The CSRC still needs to do many things, Fang said yesterday at the World Economic Forum Annual Meeting in Davos, Switzerland.
IPO issuance and re-financing last year totaled CNY1.5 trillion (USD217 billion), he claimed. "It's roughly the same volume as the total equity financing in the American market. Actually, the Chinese capital market is already playing a very important role in boosting economic growth in China."
"Despite the record number of IPOs launched and the huge re-financing volume last year, there are still more than 600 companies in the IPO wait list," stressed Fang.
Many Chinese companies went to the US for stock listing in the last couple of years to avoid the waiting list. "There are 60 Chinese companies listed in the NYSE, with a combined market cap of nearly USD4 trillion. The largest IPOs on the NYSE in 2014 and 2016 were both Chinese companies, Alibaba and ZTO Express," said Tom Farley.
The Chinese market is constantly evolving, and the US also made many mistakes in the past, and has been adapting, Farley said. China is going through the same process, he added.