Shenzhen IPO wave delivers gains to state-backed investors across Chinese cities

Shenzhen is emerging as a major source of IPO-driven returns for state-backed investors across China, according to the article republished by MarsBit from the WeChat account Zhengjieju. The piece says Shenzhen has added 26 domestic and overseas listed companies so far this year, the highest total among large and mid-sized Chinese cities, and argues that many of those listings have created sizable paper gains for government capital and industry funds from outside the city. The article highlights several cases. AI storage chip company Dapu Micro listed on ChiNext on April 16 at RMB 46.08 per share and now has a market value above RMB 200 billion. Shenzhen’s Longgang district guidance fund, which invested RMB 20 million in 2019, still held 5.6991 million shares at the time of listing, with a market value above RMB 2 billion. Nanjing Qilin Venture Capital, which invested RMB 80 million in 2020 for a 5.18% stake, is described as the company’s largest state-owned shareholder. It also points to HKC Corp., listed on the Shenzhen Stock Exchange main board on June 26, where state-backed investors from Mianyang, Liuyang in Changsha, Chongqing, Gui’an and Chuzhou recorded gains after earlier strategic investments. The article frames this as a model of regional coordination: Shenzhen incubates technology companies, outside cities invest through equity, and manufacturing capacity is then deployed in multiple locations.