Forecast for China IPOs 2008: Record year for initial public offerings

Posted January 3, 2008

"The bean counters of the financial industry peg the value of 2008 initial public offerings at $66 billion, up from last year's $63 billion." — J. Christoph Amberger

by J. Christoph Amberger

Baltimore — (TFN): Looks like China's Shanghai stock exchange is one of the few global markets that is starting 2008 on a strong upswing. The downward trend that had shaved over 1,000 points off the index since late November appears to have reversed direction.

The Shanghai stock exchange on Jan 3, 2008

There is good reason for why the index should not merely bounce back to previous high levels: It looks like the Year of the Beijing Olympics will not only set new records in synchronized swimming and beach volleyball, but also in new emissions of Chinese stocks.

Companies that have traded for years in Hong Kong (and up to recently were prohibited from issuing shares on Mainland indexes) will now be allowed to sell shares in Shanghai or Shenzen. (PetroChina made an impressive splash just a few weeks ago, as did Alibaba.com.) The bean counters of the financial industry peg the value of upcoming 2008 initial public offerings at $66 billion, up from last year's $63 billion. And 2007 was a banner year for Chinese IPOs: Chinese companies raised more money with IPOs in 2007 than in the previous six years combined!

Continuing a highly profitable theme that we cultivated in Taipan over the past couple of years, TFN's Stephanie Grimmett is currently working on a special report on the best upcoming China IPOs. Until then, here is a list of recent postings on what's going on in China right now… to give you a bit of TFN perspective.

*** Currencies: China is clandestinely widening the yuan-dollar float, by J. Christoph Amberger (January 2, 2008)

*** VIDEO — China IPOs: 2008 Forecast, by Erin Beale (January 1, 2008)

*** China and Iran: Oil in the Desert, by Stephanie Grimmett (December 18, 2007)

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