China’s initial public offerings in the technology, media and telecommunications (TMT) industry were active in the first half of 2022, with the domestic STAR and ChiNext markets attractive to tech-heavy startups.

In the first half of the year, there were 68 IPOs of TMT companies on the Chinese mainland, down slightly from the 74 recorded in the second half of 2021.

The amount of funding rose 6% from six months ago to 160.4 billion yuan ($24.7 billion).

China Mobile Ltd’s domestic listing on the main board with about 52 billion yuan was the TMT industry’s largest IPO for the first half on the Chinese mainland.

“Driven by domestic markets STAR and ChiNext, Chinese TMT companies remained relatively active in the capital market in the first half of 2022,” said Gao Jianbin, TMT industry leader in mainland China at PwC.

A total of 30 TMT companies in the Chinese mainland chose to list on the STAR market and 19 on the ChiNext market.

During this period, 41 listings were in the hardware and technology equipment industry, while the software and services industry recorded 26 listings.

Since the inauguration of the ChiNext registration system in August 2020, 330 companies have been listed on ChiNext, with a total financing amount of 300.7 billion yuan and an average financing amount of 911 million yuan.

“The implementation of the State Council’s 33 stabilization policies will further boost the recovery of the Chinese economy as well as the capital market in the second half of 2022,” Gao said. “Domestic TMT companies should always prefer mainland China and Hong Kong for primary listing.”

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