China is already the biggest in many areas (as noted in past posts ). And this leadership is not just related to production and consumption – this year it is expected to become the largest market for initial public offerings (IPOs), with some US$74 billion being raised. China Economic Review notes :
“Chinese firms are expected to raise over US$73.8 billion through initial public offerings this year, making China the world’s biggest IPO market, state media reported, citing a report published by accounting firm PricewaterhouseCoopers (PwC). Over the first six months of this year alone, 176 companies launched IPOs in Shanghai and Shenzhen, raising approximately US$31 billion…all eyes remain on Agricultural Bank of China…”
While the ABC issue had a rather lukewarm reception , at least one China banker (Jack Perkowski) thought that there were “One trillion reasons to buy AgBank shares ”. It may yet be the biggest IPO, if the “green shoe” option comes into play by August 5th. Watch this space.
And, when thinking about China, think financial services as well as factory floor.