Following the lifting of domestic COVID-19 restrictions and boosted by a recovery in retail consumption, China’s economic growth rebounded to 4.5% for the first quarter of 2023, an uptick from the 2.9% GDP growth registered in the fourth quarter of 2022. The economy also recorded increases in fixed asset investment (4.0%), value-added industrial output (3.6%) and foreign trade (4.7%) for the first five months of 2023.1
The first half of 2023 saw a modest recovery in the pace of U.S. IPO activity for Chinese companies after the significant drop-off in listings in 2022.2 However, activity remains well below the levels seen in 2020 and 2021, as market conditions and continued regulatory concerns have created a challenging environment for offshore listings of Chinese companies in the U.S.
Going-private transaction activity for U.S.-listed companies based in China slowed in 2023, with only one privatization completed during the year through June and two potential transactions announced that have yet to close. U.S.-listed Chinese companies with pending going-private proposals represented about USD 4.5 billion in total market capitalization as of June 30, 2023