Recently, several publications came up with tales of people becoming rich after the boom in the China IPO. The stock exchanges of Shanghai, Shenzhen as well as Hong Kong registered remarkable growth. In fact, this has been the scenario over the last couple of years and now China stands at a place where “deficiency in liquidity” is a far cry.
In the past two decades, China has seen more number of entrepreneurs coming up. The country has also experienced enhanced economic growth in the last 20 years. These entrepreneurs aim at establishing private firms, which later become public thereby increasing the chances of become solvent very fast.
China IPO has worked wonders for almost all and sundry. The FY 2007 has been particularly very favorable for the share market in China. During the year 2007, the Hong Kong stock exchange registered an increase of 45%. The Shenzhen as well as Shanghai stock exchange were not behind and recorded an increase of 132% and 83% respectively.
It was anticipated by few economists that during the year 2007, as much as $90 billion would be earned from China IPO (initial public offerings). The Chinese market can boast of a “pool of liquidity”, especially during a period when the other parts of the country are facing “financial drought”.
With this kind of scenario prevailing in China, almost all sectors of the economy will benefit and in the process add to the growth in the GDP or the gross domestic product of the country.
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Last Updated on : 30th July 2013