Sinochem seeks $5.5 billion from Shanghai IPO

The flow of big initial public offerings from China’s state-owned companies continues despite the weak market conditions. Sinochem Corp, the country’s biggest supplier of chemical products, is bravely pushing ahead with a new Rmb35 billion $5.5 billion IPO in Shanghai, less than a month after the massive $2.1 billion IPO of Sinohydro, a builder of hydroelectric dams.

Sinochem’s deal is the latest indication of the contrast between primary and secondary markets in Shanghai. The benchmark Shanghai Composite Index has slumped around 13% this year, but that has hardly dented the supply of issuance around 243 new securities have listed on the A-share market so far this year, raising a total...