Shanghai outshines NASDAQ and NYSE combined with $26.2 billion in IPOs in 2023

Shanghai’s Initial Public Offerings (IPOs) in 2023 soared past the combined figures of two of America’s most prominent stock exchanges.

According to Stocklytics.com, the Shanghai Stock Exchange (SSE) outstripped NASDAQ and NYSE combined, surpassing $26 Billion in 2023

Edith Reads, a financial specialist from Stocklytics, said, “Shanghai’s IPO market witnessed an unprecedented surge in activity throughout 2023, with a diverse range of companies eager to tap into the city’s vast pool of capital and investor appetite.

“From tech startups to traditional manufacturing giants, firms across various sectors rushed to capitalize on Shanghai’s booming economy and investor enthusiasm.”

Chinese exchanges lead

In the third quarter, Chinese exchanges dominated IPOs, amassing a total of $45.2 billion, surpassing the $18.8 billion on the US stock markets. Notable global IPOs that year included Saudi Aramco at $25.6 trillion, Alibaba Group at $21.77 trillion, and Softbank Corporation at $21.35 trillion.

A-share stock exchanges maintained their stronghold in the global IPO landscape, claiming nearly half of the total proceeds and a fifth of all deals in the third quarter of 2023. NASDAQ surprised the markets by vaulting to third place globally, raking in $10.9 billion from a tech firm specializing in semiconductors and software design.

Meanwhile, the New York Stock Exchange secured a solid fourth position, a significant improvement from 2022 when neither exchange reached the top five.

Although the US markets made strides in catching up in the global IPO race, they remained the foremost global exchange operators based on the market capitalization of the listed companies. NYSE US accounted for $25.56 trillion, while NASDAQ US stood at $23.42 trillion. Chinese stock exchanges, in comparison, did not hold a dominant position, with the Shanghai Stock Exchange claiming only $6.52 trillion, ranking fourth, and the Shenzhen Stock Exchange in seventh place.

Future prospects

The competition for IPO dominance is expected to intensify, with emerging markets vying for a larger market share. While Chinese exchanges continue to lead the charge, the US stock markets remain a formidable challenger, poised to capitalize on their institutional strength and market infrastructure.

The Hong Kong stock exchange is struggling the most with many challenges. They have only completed 12 IPOs in the first quarter of 2024, a significant 35% drop compared to last year.

However, the Hong Kong exchange will likely rise due to the city’s expanding IPO infrastructure. Besides, interest rate shifts and economic stimulus policies will likely steer IPO activities for the remainder of 2024.