empty
07.07.2022 11:52 PM
Asia rules? Stocks are getting cheaper, and China is breaking IPO records

This image is no longer relevant

The Asia-Pacific region can recover faster than the West?

The Asian region, which is home to the second and third largest world economies, is attracting more and more attention from investors and market specialists. And it's not just about the special path that the Chinese economy is following. And not only in the super dovish monetary policy of the Bank of Japan, which continues to devalue the national currency.

So what is it then? Is it because aggressive interest rate hikes by major central banks remain "overboard" and their impact is remote and muted? And what kind of fear of recession can we talk about if, for example, the Australian economy has fully recovered from the effects of COVID-19 and is thriving on rising commodity prices? Of course, in Japan, with its dependence on imports, the economy is still very fragile. However, inflation is several times less than, for example, in the United States, and its growth is due to external factors.

This image is no longer relevant

Asian stocks really fell in price

Let's not forget that on the same fears (recession and inflation) in June, the valuations of almost all Asian stocks reached the lowest level since the beginning of the pandemic. Moreover, the regional stock markets of the Asia-Pacific region have been declining for the third consecutive month. Concerns about the loss of income and the growth of the cost of capital, expressed in the price-to-earnings ratio (P/E), led to the lowest performance for stocks:

  • India – 8.02;
  • South Korea – 8.48;
  • Hong Kong – 9.94;
  • Taiwan – 10.02;
  • Thailand – 14.54;
  • Malaysia – 13.71.

Recession is not for China

As for China, the latest indicator of its P/E increased from 9.38 a month earlier to 10.08. In addition, the government plans to introduce large-scale fiscal assistance in the third quarter of 2022. In order to revive consumer demand, which has suffered from a series of quarantine restrictions due to COVID-19, and to help overcome their consequences, a program of fiscal stimulation of the economy worth $220 billion is being prepared. Such active support of the authorities can lead the country's economy and corporate revenues of China to recovery. At a time when the rest of the world is likely to slow down or even go into recession.

This image is no longer relevant

Applications increased by a third

The surge in listing applications from Chinese companies also speaks to the growing appeal of China for investors and equity. The number of IPO candidates in China doubled to almost 1,000 applicants in June. This figure was the highest in at least three years. According to experts, such a rush can partly be explained by the easing of restrictions on COVID-19, as well as the fact that those wishing to list on the Chinese stock exchange tried to have time to apply before June 30. In this case, they could avoid the need to update the results of the first half of the year and not delay the process even more.

According to experts, the Shanghai stock exchange led the world in terms of IPO volume in the first half of 2022. In June alone, Chinese regulators and stock exchanges accepted 444 listing applications, bringing the total number of IPO applicants to 933. Three Chinese trading platforms that have adopted the American IPO registration system, compared to the same period last year, recorded a 31% increase in applications for more than a year.

Half of the IPO revenue

In the first six months of 2022, the volume of IPOs (in Shanghai and Shenzhen) is worth $46.3 billion. And this is about half of all global IPO revenues! Most likely, the world's largest fundraiser in the first half of the year, the Chinese IPO market will continue to lead in the second half of the year. The largest placement by 2022 may be the Swiss agrochemical group Syngenta, which will attract about 10 billion US dollars. According to exchange filings, a listing worth about $1 billion will be made by Megvii, a company blacklisted in the US in the field of artificial intelligence (AI). Investors are watching the potential revival of the Ant Group IPO with no less interest. According to media reports, Jack Ma's company has received preliminary permission for listing from the central leadership of China. In addition, China's IPO plans are largely focused on sectors including:

  • innovative technologies;
  • industrial production;
  • telecommunications;
  • healthcare;
  • energy.

This image is no longer relevant

Buy on the rally!

And while the situation with COVID-19 in China still looks rather uncertain, and real estate companies may default on their debts, analysts see an improvement in the picture as a whole in the second half of the year. And market experts advise investors to take advantage of the short-term correction in the Chinese market and buy on the decline. Moreover, last month the Chinese yuan fell by 0.4% against the greenback, while the dollar index rose by 2.9% against the basket of major world currencies. Last month alone, the Shanghai Composite added 6.66%. And the Shanghai Shenzhen indicator is now in a very positive zone and will mainly grow in the coming months.

Asia-Pacific indices are on the positive side today

As a result of today's trading, all ATP indices closed in the green:

  • Shanghai Composite – 0.27% (3364.4 p.);
  • Shenzhen Composite – 0.93% (2227.66 p.);
  • Hang Seng Index – 0.15% (21,620 p.);
  • KOSPI – 1.84% (2,334 p.);
  • Nikkei 225 – 1.47% (26,490 p.);
  • S&P/ASX 200 – 0.81% (6,648 p.).
Svetlana Radchenko,
Analytical expert of InstaTrade
© 2007-2025

Recommended Stories

El Bitcoin enfrenta predicciones de caída. Trampas para los traders en el BTC

Actualmente, el mercado de criptomonedas experimenta cierta volatilidad, aunque muchos analistas anticipan una intensificación de la tormenta. Advierten a los traders sobre posibles trampas de precios en la dinámica

Larisa Kolesnikova 13:03 2025-07-24 UTC+2

15 % en lugar de 30 %: Trump y la UE están cerca de un acuerdo sobre aranceles

La UE y Estados Unidos finalmente se acercan a la línea de meta en las negociaciones sobre los aranceles comerciales: se está discutiendo una tarifa de compromiso del 15 %

Аlena Ivannitskaya 07:59 2025-07-24 UTC+2

Nuevo récord en Wall Street: el S&P 500 y el Nasdaq se disparan gracias a Alphabet

Los índices bursátiles estadounidenses S&P 500 y Nasdaq cerraron el lunes en máximos históricos. La razón fue un aumento del interés de los inversores en las acciones de los líderes

11:58 2025-07-22 UTC+2

Los índices estadounidenses irrumpen en el verano: sexto récord del S&P 500 y auge de los chips

El S&P 500 estableció su sexto récord. El Nasdaq mostró seis de los mejores resultados. Las acciones de empresas de chips se dispararon. Las acciones de PepsiCo y United Airlines

11:20 2025-07-18 UTC+2

Turbulencia del bitcoin: de $123 000 a $115 000. El criptomercado se mantiene en silencio

La primera criptomoneda volvió a demostrar maravillas de volatilidad: en un par de días el Bitcoin experimentó un ascenso hasta los $123 000 y una caída hasta los $115

Larisa Kolesnikova 11:47 2025-07-16 UTC+2

El Bitcoin supera los $120 000, el Nasdaq alcanza nuevos máximos: el mercado ansía impulso

El martes abre una serie de datos económicos clave y la temporada de informes. El Nasdaq muestra su séptimo cierre récord desde el 27 de junio. Las acciones de criptomonedas

11:59 2025-07-15 UTC+2

Boom bursátil: Nvidia supera los $4 billones, el Bitcoin no se queda atrás, Dow y S&P suben

Los índices suben: el Dow Jones creció un 0,43 %, el S&P 500 un 0,27 %, y el Nasdaq un 0,09 %. Nvidia cerró la sesión. Pronóstico positivo de Delta

10:33 2025-07-11 UTC+2

Trump vuelve al ataque: arancel del 50% sobre el cobre y nuevos golpes a China y la UE

Trump anunció aranceles del 50% sobre la importación de cobre, nuevos aranceles sobre semiconductores y productos farmacéuticos. Declaró que las negociaciones con la UE y China son exitosas. Japón

10:28 2025-07-09 UTC+2

De $4 a $100 mil por moneda – ¿por qué están despertando las carteras BTC «antiguas»?

Siete carteras de Bitcoin «antiguas», creadas en abril y mayo de 2011, se activaron repentinamente. En conjunto, movieron 70 000 BTC – el equivalente a $7,6 mil millones al tipo

Svetlana Radchenko 07:25 2025-07-07 UTC+2

S&P, Nasdaq y Dow suben al unísono: los mercados reaccionan a las sorpresas en el empleo y la política comercial

S&P 500 subió un 0,83%; Nasdaq subió un 1,02%; Dow subió un 0,77%. El crecimiento del empleo en EE. UU. superó las expectativas en junio. Tripadvisor sube tras el informe

11:15 2025-07-04 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.

We are sorry for any inconvenience caused by this message.