The real estate and semiconductor sectors were the top two most funded industries in Greater China in the first quarter of 2024, raising $8.3 billion and $2.7 billion respectively from private equity and venture capital investors.
In terms of deal volume, however, real estate startups were among the lowest ranked as only two deals were sealed in the sector in Jan-March 2024, show data from Greater China Deal Review: Q1 2024. The semiconductor industry, meanwhile, witnessed 108 deals—the highest in the three-month period.
Source: DATA VANTAGE
The real estate industry’s funding haul was buoyed by Newland Commercial Management’s $8.3 billion funding from PAG, CITIC Capital, and Ares Management. The only other real estate deal in Q1 was Hong Kong-based Weave Living’s undisclosed funding from Warburg Pincus.
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The total funding into China’s chipmakers, meanwhile, more than doubled in Q1 from $1.4 billion in the previous quarter. “In line with high investor interest, new semiconductor ventures continue to emerge in the market. About 44% of the deals in the segment were recorded at Series A or earlier,” according to the report by DealStreetAsia DATA VANTAGE.
The biggest deal in the semiconductor sector was sealed by Chinese memory chipmaker CXMT, which raised $1.5 billion at a pre-money valuation of almost 140 billion yuan ($19.4 billion).
Top semiconductor fundraisers in China in Q1 2024
Auto & Parts was the third most funded industry. The top three industries cumulatively accounted for around 66% of the total funding into Greater China startups in the first three months of the year.
In terms of deal volume, the ‘Medical Devices & Energy Storage’ industry was the second most funded after semiconductor with 60 deals.
Overall funding at two-year high in Q1 2024
Investments into Greater China startups surged to a two-year high, reaching $20.1 billion in Q1 2024—up 86.7% sequentially and 36.6% year-on-year. The month of March witnessed record-high PE-VC funding of $13.9 billion, which lifted overall funding in Q1.
However, deal count in Q1 dropped to 615 from 665 deals in the previous quarter.
Source : DealStreetAsia DATA VANTAGE
Proceeds from mega deals nearly triple
The first quarter witnessed 19 mega deals (deals worth at least $100 million), raising more than $14.6 billion which is almost thrice of the total funds raised in the previous quarter. These megadeals accounted for 72.8% of the total proceeds in Q1.
The Auto & Parts industry bagged the highest number of mega deals in the quarter followed by Semiconductor and Pharmaceutical. Real estate and Aerospace completed the top five with one mega deal each in the quarter.
Mega Deals in Q1 – Top five sectors
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IndustryNo. of mega dealsInvestment Size
Auto & Parts5$1720.2m
Semiconductor3$1751.7m
Pharmaceutical2$296.8m
Real Estate1$8300m
Aerospace1$933m
IPO activity falls to five-year low amid tighter scrutiny
IPO activities by Greater China firms slowed down to just $3.3 billion in Q1, 2024 to hit at least a five-year low, continuing its downward trajectory for three consecutive quarters now.
The first quarter witnessed 37 IPOs down 37.3% from 59 in the previous quarter, while the total proceeds more than halved during the period.
Source : Dealogic; DealStreetAsia DATA VANTAGE
China’s regulators’ stringent rules on onshore IPOs in mainland China this year led to companies cancelling their IPO plans in the domestic market with some favouring offshore listings in markets like Hong Kong and New York.
After the tightened scrutiny by China’s watchdogs on onshore IPOs, none of the mainland Chinese exchanges could make it to the world’s top five stock markets in terms of IPO proceeds in the first quarter of 2024. This is in stark contrast to last year when four out of the top 10 global exchanges were Chinese exchanges with Shanghai’s tech-focused STAR Market grabbing the first position and Shenzhen’s startup board ChiNext clinching the second spot.
Exchanges in Shanghai and Shenzhen raised about $2.7 billion in IPO proceeds in the first quarter which is only around one fifth of the $13 billion they raised in Q1 2023.
Grandtop Yongxing Group Co Ltd’s IPO in the Shanghai Stock Exchange topped the charts with $342 million in IPO proceeds, the highest by a Greater China firm in Q1, 2024. It was followed by Wafer Works (Shanghai) Co Ltd with IPO proceeds of $253 million and Xi’an NovaStar Tech Co Ltd with $228 million in IPO proceeds.
Top ten IPOs by Chinese firms in Q1, 2024
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CompanyIPO ProceedsStock ExchangeIndustry
Grandtop Yongxing Group Co Ltd$342 mShanghai Stock ExchangeUtility & Energy-Waste Management
Wafer Works (Shanghai) Co Ltd$253 mSci-Tech Innovation Board(STAR Market)Computers & Electronics-Semiconductors
Xi’an NovaStar Tech Co Ltd$228 mShenzhen Stock Exchange-ChiNextComputers & Electronics-Measuring Devices
Shanghai Longcheer Technology Co Ltd$217 mShanghai Stock ExchangeComputers & Electronics-Components
Chengdu Sino-Microelectronics Technology Co Ltd$211 mSci-Tech Innovation Board(STAR Market)Computers & Electronics-Semiconductors
Robosense Technology Co Ltd$136 mHong Kong Exchange-Main BoardComputers & Electronics-Measuring Devices
Wuxi Holyview Microelectronics Co Ltd$135 mShanghai Stock ExchangeComputers & Electronics-Semiconductors
Migao Group Holdings Ltd$134 mHong Kong Exchange-Main BoardChemicals-Speciality
Cinderson Tech (Suzhou) Co Ltd$130 mShanghai Stock ExchangeComputers & Electronics-Components
RIAMB (Beijing) Technology Development Co Ltd $121 mShanghai Stock ExchangeMachinery-General Industrial
Among the different industries, Computers & Electronics led the charts with 14 IPOs and $1.85 billion in IPO proceeds. Professional services with 5 IPOs and Chemicals with 4 IPOs were placed in second and third position in terms of IPO deal count in Q1. In terms of IPO proceeds, Utility & Energy with $341.8 million and Chemicals with $276.3 million were the other two in the top three after Computers & Electronics.
Source : Dealogic; DealStreetAsia DATA VANTAGE
