Under the impact of Covid-19 in 2020, the total global economic growth is sluggish. However, China has become the only major economy in the world with reported positive growth. In such a positive capital environment, there is no doubt that Chinese companies have also achieved greater development, which provides them more opportunity and possibility to do initial public offering (IPO). In 2020, the scale of A-share IPO financing capital reached 467.3 billion yuan, a year-on-year increase of over 80%. According to Deloitte, research on Chinese IPOs in 2021 not only shows that the HK stock market will grow, but also suggests the capacity of the Mainland IPO market will expand further in 2021.
Although most issuers will still be small or mid-scale, every market is expected to see more new listings and raise more funds. The SSE STAR Market is forecast to have about 150-180 IPOs raising about RMB 250 billion-RMB 300 billion; 140-170 companies could go public on ChiNext, raising RMB 140 billion-170 billion; and the Main Board and SME Board are likely to have about 120-150 new listings raising RMB130 billion-RMB 170 billion.
As a result, what can we look forward among Chinese IPOs in 2021?
Four Chinese companies which will have IPOs in 2021 Q1 are:
- Liziyuan
- Zuming Bean Products Co
- China National Gold Group Gold Jewellery Co.
- Kuaishou
F&B companies are budding in Chinese stock exchange and contribute to many Chinese IPOs in 2021 Q1
Famous beverage company, LIZIYUAN
The beverage market in China has a large growth potential. Hence, it is no surprise that beverage companies are looking to leverage the positive consumption growth to IPO.
Zhejiang LIZIYUAN Food Co., Ltd. was established on October 22, 1994. Its headquarters are located in Jinhua City, Zhejiang Province, which is known as the “Hometown of Dairy Cows in the South”. It is a company that integrates R&D, production and sales of dairy beverages and other beverages. This company is limited by shares. The company’s products include six series of milk beverages, dairy products, vegetable protein beverages, compound protein beverages, fruit juice beverages, and cereal beverages. Among them, the LIZIYUAN sweet milk and milk beverage series is unique among similar products in the market. With its excellent quality and uniqueness, the flavor has won the trust of consumers. After more than 20 years of market cultivation and brand building, the popularity of the brand has continued to increase, which has established the market advantage of LIZIYUAN’s sweet milk and milk beverage series.
LIZIYUAN did its IPO in Shanghai Stock Exchange in 8th Feburary in 2021.
Source: LIZIYUAN, range of Liziyuan’s reach in China
Zuming Bean Products Co, a regional well-known food production company in Chinese IPOs in 2021
Zuming Bean Products Co., Ltd. was established in 2000 and is located in Binjiang District, Hangzhou. It is a large-scale soybean product manufacturer in China integrating R&D, production and sales. It now owns Anji Zuming Beans Food Co., Ltd. and Yangzhou Zuming Beans Four wholly-owned subsidiaries of Shanghai Zuming Bean Products Co., Ltd. and Hangzhou Zuming Food Co., Ltd.
The company will continue to uphold the corporate spirit of “Integrity and Responsibility”, adhere to the corporate mission of “Quality First“, and practice to pursue the spiritual and material well-being of all employees. The brand’s business philosophy focuses on the research and development, production, processing and sales of soy foods, and realizes the strategic goal of ” going to the world” so that everyone can eat nutritious and healthy soy foods.
Zuming Bean Products Co did its IPO in Shenzhen Stock Exchange in January 2021.
China National Gold Group Gold Jewellery Co., a holding subsidiary of China National Gold Group Corporation enters the stock market
China National Gold Group Corporation is the only central enterprise in the gold industry, and the largest enterprise in Chinese gold industry. As a holding subsidiary of China National Gold Group Corporation, China National Gold Group Gold Jewellery Co. is a large-scale professional gold jewelry producer. It is a holding subsidiary of China National Gold Group Co., Ltd., and carries the important mission of “China Gold” to extend the industrial chain. China National Gold Group Gold & Jewellery Co., Ltd. has continuously improved its strategic planning, expanded sales channels, and established a “chain + monopoly” business model. It has established 30 brand service centers and more than 2,000 specialty stores across the country, creating a brand new gold Jewelry sales empire.
China National Gold Group Gold & Jewellery Co., Ltd. continues to expand its business scope, actively provides customers with more investment and financing tools and capital services, launches precious metal investment and customized business, and strives to build a China Gold B2C online shopping mall platform, which effectively serves consumers Provide a “pleasant, professional and fast” new online shopping experience.
China National Gold Group Gold Jewellery Co. did its IPO in Shanghai Stock Exchange on the 5th of February 2021.
Source: China National Gold Group Gold Jewellery Co., Gold DIY Service
The rising trend of short video software company: Kuaishou goes first in Chinese IPOs in 2021 Q1 in Hongkong Exchange Market
Kuaishou, internationally known as Kwai (Hong Kong Stock Exchange: 01024) is a short video mobile application developed by Beijing Kuaishou Technology Co., Ltd., and its predecessor “GIF Kuaishou”, launched in 2011, was an application for making and sharing GIF images. This application transformed into a short video community in 2012, and has been named Kuaishou since 2014. As of the first half of 2020, the average daily active users of Kuaishou’s Chinese apps and mini programs exceeded 300 million.
Kuaishou did its IPO in Hong Kong Stock Exchange on the 5th of February 2021.
Who might be the next Chinese IPOs in 2021: F&B, short video, and biomedical
In the F&B field, the bubble tea industry remains hot, and there is a prediction that HEYTEA IPO will take place in the Hong Kong Stock Exchange. In recent days, HEYTEA has released its 2020 annual report.
The short video market is also running hot, in 2020, many company representatives from Bytedance have also discussed the possibility of Douyin listing with several investment banks. It is reported that many investment banks have conducted research and analysis on Douyin’s separate IPO. Proceeding, the relevant person in charge of ByteDance said that they are considering some business listing plans, but have not made a final decision.
At the same time, in the biomedical field, due to the need for vaccines under the development of the epidemic, biomedical companies may also have more IPOs in 2021.
Looking at the results in Chinese IPOs in 2021 Q1, we can notice that the F&B industry, companies focused on short video and also precious metals and biomedical field are flourishing. Delighted to see the more and more Chinese IPOs in 2021, we become more curious: under the effect of politics and economics, which company would be the next?
Author: Yiyin XU
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