HONG KONG – Chinese companies raised a record $148 billion through global equity capital markets in the first four months of 2021, data showed, as they tapped the ample cash available with investors due to the coronavirus pandemic.
That was more than double the sum they garnered from equity markets in the year-ago period and accounted for a fifth of all equity capital raising deals this year, according to data from Refinitiv.
Of that, Chinese companies raised a record $31.9 billion through initial public offerings (IPOs), double from the year-ago period.
The data indicated investors were drawn to China’s economic recovery and huge consumer market, despite concerns about government action against some sectors.
Companies benefitted from the liquidity sloshing around as governments worldwide ramped up stimulus measures to combat the economic impact of the pandemic and consumers cut back on discretionary spending.
“It’s a very strong market and valuations are solid,” said Matt Emsley, China managing partner at law firm Herbert Smith Freehills.
