IPOs raised in mainland China have collapsed by 85% year-over-year to CNY 48B in the first nine months of the year.

Christopher Wood, global head of Equity Strategy at Jefferies, said in a note that the ongoing collapse in IPO activity in China is causing "a dramatic change in the supply and demand dynamics for Chinese equities."

IPO activity in China plummeted due to the prolonged regulatory scrutiny for the country’s economic policy.

Funds raised via the Shanghai Stock Exchange (SHCOMP) and the Shenzhen Stock Exchange fell to $4B from January through June, down from $29.8B in the same period in 2023, according to S&P Global Market Intelligence data.

Results for the 2024 first half were less than the second half of last year, which raised $15.89B – the lowest half-year result since the first six months of 2020, when $20B were raised, S&P Global Market Intelligence data showed.