Core Insights - The core observation is that while the Shanghai Composite Index is at a 10-year high, the IPO fundraising amount from January to September has significantly decreased by 84% compared to the peak year of 2022, indicating a shift in policy direction towards prioritizing certain industries like electric vehicles (EV) and semiconductors [1][2]. Group 1: IPO Market Overview - The total IPO fundraising amount in mainland China from January to September is approximately $10.065 billion, which is a 70% increase from the previous year but an 84% decline from the record high of $63.346 billion in 2022 [1]. - The number of IPOs during this period is only 75, representing just 20% of the 375 IPOs in the same period of 2021 [1][2]. - The current high stock prices facilitate easier fundraising for companies, yet the overall IPO activity remains low due to controlled supply in the stock market [2]. Group 2: Industry Focus - The IPOs are increasingly concentrated in sectors such as EVs and semiconductors, reflecting government intentions to direct funds towards high-potential manufacturing industries [1][2]. - Notably, five out of the top ten companies by fundraising amount are in the automotive-related sector, including companies like Heilongjiang Tianyouwei Electronics, which serves major clients like BYD and Changan Automobile [2]. - Semiconductor companies, particularly those involved in manufacturing equipment, are also prioritized for IPOs, as seen with Beijing Yitang Semiconductor Technology's listing on the STAR Market [2][3]. Group 3: Future Prospects - There are expectations for more listings related to advanced technologies, with companies like Unitree Robotics and Moore Threads planning to submit IPO applications soon [4]. - The focus on EVs, semiconductors, and robotics aligns with national policies aimed at enhancing competitiveness in these sectors, which are considered "national strategy stocks" [4]. - A study indicates that subsidies for the manufacturing sector are significantly higher than for non-manufacturing, further supporting the government's strategy to bolster manufacturing competitiveness [4].

Core Insights - The core viewpoint of the article highlights the significant decline in IPO fundraising in China, with a focus on government policy directing funds towards specific industries such as electric vehicles (EV) and semiconductors, while overall IPO activity remains low compared to previous years [2][4][5]. IPO Fundraising and Activity - In the first nine months of 2023, the total IPO fundraising in mainland China was approximately $10.065 billion, a decrease of 84% compared to the highest fundraising year of 2022, which was $63.346 billion [4]. - The number of IPOs in 2023 was only 75, representing just 20% of the 375 IPOs recorded in the same period of 2021 [4][5]. - The Shanghai Composite Index is currently at a 10-year high, which typically facilitates easier fundraising for companies [4]. Industry Focus - The IPOs that did occur were predominantly in sectors prioritized by the government, such as EVs and semiconductors, indicating a strategic focus on enhancing the manufacturing sector [2][5]. - Notable companies in the IPO rankings include those in the automotive supply chain, with five out of the top ten fundraising companies related to automotive components [5][6]. Government Policy and Market Dynamics - Financial institutions are controlling the supply of IPOs to prevent market crashes, leading to a preference for certain industries while larger IPOs in non-manufacturing sectors are redirected to Hong Kong [5]. - The article mentions that semiconductor-related companies are being prioritized for listing, reflecting the government's emphasis on high-tech industries [6][7]. Future Outlook - There is an expectation for continued IPO activity in high-tech sectors, with companies like Unitree Robotics and Moore Threads planning to submit their IPO applications [9]. - The Chinese government is likely to maintain its support for high-tech industries, as indicated by recent discussions at the 20th Central Committee meeting regarding economic policies for 2026-2030 [9][10].