(JW Insights) Sep 22 -- Innovative technology companies on the Chinese mainland are expected to usher in new development opportunities as the economy sustains its recovery momentum and authorities have rolled out a slew of measures to invigorate the nation's capital markets and boost investor confidence, said a report released by global consultancy PwC.

There were 66 IPOs by Chinese mainland TMT (technology, media and telecom) enterprises in the first half of the year, down from the 124 IPOs recorded during the second half of 2022, PwC said. The total amount of financing for the 66 listings reached about RMB82.9 billion ($11.4 billion), China Daily reported on September 20.

China has halved the stamp duty on stock transactions to boost the confidence of capital market investors, according to a notice issued by the Ministry of Finance and the State Taxation Administration in August.

The China Securities Regulatory Commission has said that the nation will temporarily slow the pace of IPOs and further regulate major shareholders' share reductions.

Experts said the policy mix will promote a more virtuous cycle of investment and financing and inject more confidence and certainty into the market.

"Looking ahead, the policies will guide the long-term and healthy development of the A-share market," said Gao Jianbin, PwC Chinese mainland TMT industry leader.

The across-the-board registration-based IPO system will also further improve issuance efficiency and listing predictability across the domestic stock market, he said.

Moreover, in the first half, the number of Chinese companies going public in the United States rebounded significantly, PwC added.

The implementation of regulations for the filing-based management of Chinese companies' overseas securities offerings and listings will provide more options and flexibility for Chinese mainland TMT companies seeking public floats.

The Hong Kong bourse's move to further lower the listing threshold for technology companies demonstrates its determination to attract technology companies to go public on the Hong Kong capital market, said Walter Zhang, assurance markets leader for PwC North China.

It will benefit companies in new-generation information technology, advanced hardware, advanced materials, new energy, energy conservation and environmental protection, Zhang said, according to the China Daily report.

(Yuan XY/Gao J)