In the first quarter of this year, 20 Chinese companies listed in the US, compared to six in Q1 2020, according to data from Deloitte China cited by local newspaper Securities Daily. The total amount of money raised reached USD 4.37 billion, which is nearly 12 times more than the USD 370 million from the same period last year.
The recently listed Chinese companies are concentrated in retail, cloud computing, and biotechnology sectors, the report said. The top three in terms of fundraising are vaping technology firm RLX (NYSE: RLX), Tencent-backed IoT cloud platform Tuya Smart (NYSE: TUYA), and Q&A community Zhihu (NYSE: ZH).
In contrast to the red-hot overseas markets, domestic activity has cooled down after a boom last year. The number of new listings in China doubled in Q1 2021, yet the total amount raised fell by 3% year-on-year, said another Deloitte report.
Last week, electric vehicle manufacturer WM Motors reportedly suspended its IPO on Shanghai’s tech-focused Star Market due to problems with its filings, although its founder denied such rumors, 36Kr reported. On its official WeChat channel, the Shanghai Stock Exchange laid out the new rules that suspend new Star Market listings of companies engaged in real estate and those with the main part of their business in finance, to prioritize deep tech firms.
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.