As Beijing regulators stepped up their crackdown on the industry, the value of Chinese technology companies going public in the second quarter fell by more than 60%.

According to Dealogic’s data, since the beginning of April, the initial public offerings of Chinese technology groups on global exchanges have raised only US$6 billion, a drop of nearly two-thirds from the first quarter.

The proportion of technology listings in all China’s IPOs has also fallen to the lowest level in two years, accounting for only 21% of more than 28 billion US dollars in financing during the same period.

At the time of the decline, the China Science and Technology Group has Facing pressure from BeijingIn recent months, the regulatory review of some prominent figures in the industry has been strengthened.

Regulator Blocked $37 billion IPO of Ant Group, a financial technology group controlled by billionaires Ma Yun, In November, and ordered the business ReorganizationThe authorities also punish technology groups for what they believe are monopolistic behavior, including fines on Ant Financial’s sister e-commerce group Alibaba. Record $2.8 billion.

Frank Benzimra, head of Asian equity strategy at Societe Generale, said: “China’s regulatory issues are more fundamental because it will question the valuation you can provide for companies – this is especially true for fintech companies.” “Of course, this is important for considering IPO Is very important for the company’s company.”

This Tech IPOs have fallen sharply The second quarter was in sharp contrast to the bumper harvest in the first quarter, where these groups raised more than $15.3 billion through stock sales in Shanghai, Shenzhen, Hong Kong and New York.

Dealogic’s data shows that although China’s IPOs are booming on a broader scale, global primary and secondary listings have raised a record US$65.4 billion in the first six months of this year.

Mostly down Come to hong kong. Following the $8.6 billion IPO in the first quarter, the city’s exchange has not received any technology companies from mainland China to list in the past three months.

Louis Tse, managing director of Hong Kong brokerage Wealthy Securities, said that the decline was due to the shift of global investors from high-growth stocks and the decline of Chinese companies. Seeking a secondary listing in the city.

In the past year, Chinese Internet groups listed in the United States include, NetEase and Baidu has raised billions U.S. dollars are listed in Hong Kong because there is growing concern that they may be delisted in New York.The United States passed a law in December of last year mandating Delisting company Does not comply with US auditing rules.

“This has disappeared because… after several waves of applications for listing in Hong Kong, there are not many companies left,” Xie said.

However, China’s technology IPO may make a comeback.Chinese electric car manufacturer Xpeng It said on Friday that it will seek to raise up to US$2.3 billion in a Hong Kong listing, and the transaction will begin next month.Ride-hailing group Didi Chuxing Plans to raise 4 billion US dollars It may be listed on the New York Stock Exchange in the next few weeks.

Jason Elder, a partner at Mayer Brown, said that the absence of a Chinese technology company listing in Hong Kong in the second quarter was “unusual and abnormal”, but he added that the pace of listing at the beginning of this year is unlikely continue. forever and always.

“I don’t think this is a harbinger of the market losing its appeal or opening up to technology-I think it is a matter of timing,” he said.

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