For years, China A-share IPOs consistently produced strong returns, as government controls forced companies to underprice their offerings. Now, as a result of looser listing regulations, China’s A-share IPO activity has boomed to record levels even in a global downturn, however A-share IPOs’ notorious high-flying returns have started to retreat.
China’s Revamped IPO Process Has Caused A-share Activity to Jump
Mainland China’s A-share markets in Shanghai and Shenzhen have soared in recent years as policymakers eased listing requirements and overhauled the IPO approval process, in order to both elevate the country’s mainland bourses as well as fund breakthrough technology startups.
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