China’s economy has shown sound momentum through the first three quarters of 2022 despite downward pressures brought by the complex global environment and domestic COVID-19 resurgences, as demonstrated by a 3% increase in GDP during this period. The economy also recorded increases in fixed asset investment (5.9%), value-added industrial output (3.9%) and foreign trade (9.9%) for the first three quarters of 2022.1 Continued scrutiny of offshore-listed Chinese companies and broader market turbulence have continued to weigh on the stock prices of many Chinese firms traded on U.S. exchanges.

China Transactions Insights – Early Winter 2022

U.S. IPO activity for Chinese companies slowed in 2022 amid regulatory uncertainty for Chinese companies pursuing offshore listings, compounded by choppy market conditions.2

Going-private transaction activity for U.S.-listed companies based in China has continued at a steady pace, with six privatizations completed during the year through October and six potential transactions announced that have yet to close. U.S.-listed Chinese companies with pending going-private proposals represented about USD 2.5 billion in total market capitalization as of October 31, 2022.2

 

Sources:
China National Bureau of Statistics and China Ministry of Commerce
SEC filings, company press releases and S&P Global Market Intelligence as of October31, 2022



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