The makeup of China’s equity capital market is changing as it attracts more tech companies amid rising tensions with the U.S.
Technology listings account for about a third of the $38 billion raised through initial public offerings in the mainland this year -- their share growing more than three-fold since last year to 35% of the total, data compiled by Bloomberg show. That’s significantly cut into the share of finance firms, which has fallen to 3% from about 28% last year.
Shanghai’s Star board of tech start-ups, which is just over one year old, has quickly become one of the world’s top three IPO venues, with companies raising more than $19 billion on the exchange this year. China has also been accelerating its capital market reforms for IPOs, revamping rules for Shenzhen’s ChiNext board, at a time when the U.S. is taking steps to clamp down on Chinese listings and targeting Chinese-owned software.