Brokerages catch IPO fever, eye growth

A number of Chinese securities companies either listed on domestic or overseas stock exchanges last year or have filed their prospectuses with the regulators concerned.

Against a backdrop of regulatory tightening and intense competition, growth-and expansion-minded brokerages will try to replenish net capital to meet liquidity requirements, scale up business and increase revenue. This should explain the current IPO rush, said Lu Yunting, an analyst at Zhongtai Securities Co Ltd.

Besides, as bond financing costs continue to increase, brokerages are increasingly turning to equity financing, Lu said.