New developments in Q1 IPO applications: 6 on the Shanghai Stock Exchange, 3 on the Shenzhen Stock Exchange, and 2 on the Beijing Stock Exchange

Securities Times reporter Tan Chudan

In the first quarter, the application and acceptance landscape for initial public offerings (IPOs) has quietly changed. According to statistics by Securities Times reporters, the three major exchanges in Shanghai, Shenzhen, and Beijing collectively accepted IPO applications from 11 companies in the first quarter, representing a year-on-year increase of 37.5%. Of these, the Shanghai Stock Exchange’s STAR Market took the lead with 6 companies, accounting for the majority, reflecting that the market’s support for technological innovation continues to be strengthened. In the same period, the Shenzhen Stock Exchange accepted 3 companies. In the past, the Beijing Stock Exchange ranked high in accepted volume, but in the first quarter it accepted only 2 IPO companies. An investment bank professional noted that recently the Beijing Stock Exchange has tightened its listing review, conducting on-site inspections for some companies that have already passed the approvals.

Looking at a longer time span, the STAR Market’s performance in this year’s first quarter is the best in recent years. In the first quarter of 2024 and the first quarter of 2025, the STAR Market accepted 0 and 2 companies, respectively.

In terms of industry distribution, in the first quarter this year, newly accepted STAR Market IPO companies cover key core technology areas such as medical devices (2 companies), semiconductors (2 companies), commercial aerospace (1 company), and robotics (1 company), aligning with the STAR Market’s “hard technology” positioning.

In terms of performance, among them, 2 IPO companies have not yet turned a profit. As of March 31, the newly accepted Sino-Aerospace (CASC) company’s (Zhongke Yuhang) non-recurring profit after tax in 2024 was -8.26 billion yuan; on January 22, the newly accepted Suiyuan Technology’s non-recurring profit after tax in 2024 was -15.03 billion yuan.

Worth noting is that among the 6 STAR Market IPO companies mentioned above, 3 were sponsored by CITIC Securities. The ability of leading brokerages to win large projects is evident. The other 3 were sponsored by Guotai Junan Haitong, Everbright Securities, and China Merchants Securities, respectively.

As the preferred destination for IPO companies, this year’s first-quarter IPO acceptance situation on the Beijing Stock Exchange has formed a contrast with market expectations. Public information shows that in the first three months of this year, the Beijing Stock Exchange accepted only 2 IPO companies, down clearly from 5 in the same period last year.

Specifically, Hua Yi Tai Kang newly accepted on March 31 mainly engages in R&D, production, and sales of complex formulations and innovative formulations, with non-recurring profit after tax in 2024 of 55.6138 million yuan. Huadian Everbright newly accepted in January mainly engages in the R&D, design, production, and sales of novel catalytic materials for removing air pollutants, with non-recurring profit after tax in 2024 of 25.2343 million yuan.

A broker’s investment banking professional told reporters that in recent years, because the Beijing Stock Exchange has a relatively inclusive listing system, it has become the preferred choice for more and more companies intending to list. Some companies that had originally planned to list on the Shanghai and Shenzhen markets chose to “take the detour” instead, which also led to the number of companies under review exceeding that of the Shanghai and Shenzhen exchanges.

According to reporter statistics, as of March 31, the Beijing Stock Exchange had 165 IPO projects under review (in stages including acceptance, inquiry, and suspension), while the Shanghai Stock Exchange and the Shenzhen Stock Exchange had only 57 and 52, respectively, in the same period.

The Securities Times reporter confirmed with investment banking professionals from brokerages. To further ensure the quality at the entry point of issuance and listing, the Beijing Stock Exchange has initiated on-site inspections for some IPO companies that have already passed the approvals. In mid-March, Meiya Technology, which had already “submitted for registration,” announced it would withdraw its IPO filing materials with the Beijing Stock Exchange.

As of March 31, there were 12 Beijing Stock Exchange IPO companies that had already submitted for registration, and 8 companies that had passed the approvals but had not yet submitted for registration.