Mainland China ranks world's No.1 in IPO scale in 2007

Chinese mainland stock market ranked the world's No.1 in terms of IPO scale in 2007, surpassing the U.S., an industry report said yesterday.

IPOs in the mainland's two bourses in Shanghai and Shenzhen totaled up to RMB 477.1 billion (US$65.36 billion) in 2007, PricewaterhouseCoopers LLP said yesterday. Meanwhile, the figure for the U.S. market, which includes three bourses, stood at RMB 465.3 billion up to Dec. 20.

One reason for this IPO upsurge is that state-owned companies which already listed in Hong Kong were urged to go public in the mainland stock market by the Chinese government.

Analysts said IPOs on the mainland will maintain the upward trend and is likely to reach another record this year. The value of IPOs is expected to hit RMB 480 billion in 2008 on the Chinese mainland, according to PwC.

Market insiders said around 35 companies are expected to float shares on Shanghai and Shenzhen's main board while another 100 companies are likely to get listed on the small and medium-sized board on Shenzhen stock market this year.