Core Insights - The article discusses the trajectory of China's IPO market from 2021 to 2025, highlighting a "V" shape recovery influenced by macro policies and market adjustments [2][6]. Market Trends - In 2021, there were 625 IPOs in China, raising over 800 billion RMB, marking a peak [2]. - The market cooled down in 2022-2024, with IPO numbers and fundraising declining for three consecutive years, hitting a low in 2024 with only 219 IPOs and total fundraising of 143.04 billion RMB, less than 20% of the peak [2]. - A recovery is expected in 2025, with IPO numbers rising to 277, a 26% increase year-on-year, and total fundraising rebounding to 347.39 billion RMB, a 143% increase [2]. Policy Impact - The period from 2022 to 2024 saw tightened regulations aimed at improving the quality of listed companies, making it harder for non-compliant firms to go public [6]. - The full implementation of the registration system in 2023 did not lower the threshold but shifted the review power to exchanges, supporting tech innovation companies aligned with national strategies [6]. - The recovery in 2025 indicates that market participants are adapting to a stricter regulatory environment focused on high-quality listings [6]. Structural Changes in Listing Locations - The proportion of IPOs in the A-share market dropped from 84.5% in 2021 to 41.5% in 2025, while the Hong Kong Stock Exchange's share rose from 11.4% to 41.9% [8]. - The U.S. stock market saw a temporary increase in share to 24.2% in 2024 but fell back to 16.6% in 2025 as Hong Kong's appeal grew [8]. - The shift is attributed to stricter A-share IPO reviews and a preference for more flexible rules in Hong Kong, positioning it as a key platform for Chinese new economy companies [8]. Internal Market Dynamics - Within the A-share market, the Shanghai Stock Exchange's share of IPOs decreased from 51.7% in 2021 to 46.6% in 2025, while the Beijing Stock Exchange's share tripled from 9.3% to 27.8% [10]. - This growth in the Beijing Stock Exchange reflects successful policies aimed at supporting innovative small and medium enterprises [10]. Future Outlook - The article concludes that the IPO market in China has transitioned from a focus on quantity to quality, with a multi-market structure emerging [11]. - The close proportions of A-share and Hong Kong IPOs, along with the growth of the Beijing Stock Exchange, indicate a developing multi-tiered capital market system [11].