JULYASIA BUSINESS OUTLOOK9Southeast Asian stock exchanges are seeing an increase in initial public offerings. While global IPO proceeds fell by 30 percent year on year from January to June, they increased by 40 percent in Southeast Asia. Companies focused on domestic demand, such as real estate and food products, as well as resource companies dealing with renewable energy, stood out ­ but not tech companies, which are facing deteriorating market conditions in the United States and Europe.Sources examined IPO data from Southeast Asia using Dealogic, a financial market platform. From January to June 2023, IPOs raised $4.1 billion, a 43 percentincrease over the same period last year, and the number of IPOs increased by 14 percent to 79.Since 2019, before the impact of the COVID-19 pandemic, both the number of IPOs and the amount raised have been increasing. While still small in comparison to the United States and Europe, they have increased in value by approximately 80 percent. NEWSROOMSOUTHEAST ASIA A HOTSPOT FOR IPOS, WITNESSES 43 PERCENT INCREASE FROM 2022The outstanding structural policy tools in China totaled 6.87 trillion yuan ($952.14 billion) at the end of June, according to the central bank, up 0.7 percent from 6.82 trillion yuan at the end of March.In recent years, the central bank's arsenal of structural policy tools has grown to include relending and rediscount facilities, as well as other low-cost loans.A senior central bank official stated last week that the bank will use policy tools such as the reserve requirement ratio (RRR) for banks and its medium-term lending facility to help the world's second-largest economy weather the challenges it faces.This week's data reinforced the view that China's post-COVID recovery is faltering rapidly, putting pressure on policymakers to provide more stimulus to boost activity. STRUCTURAL POLICY TOOLS IN CHINA AMOUNTS TO $952 BILLION, SEES 0.7 PERCENT INCREASE
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