China Daily Website - Connecting China Connecting the World
USEUROPE AFRICAASIA 中文Français

Sorry, the page you requested was not found.

Please check the URL for proper spelling and capitalization. If you're having trouble locating a destination on Chinadaily.com.cn, try visiting the Chinadaily home page

BACK TO THE TOP
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
Business\Markets

China slows down on A-share IPO approval

chinadaily.com.cn | Updated: 2017-06-05 15:19

China slows down on A-share IPO approval

China's top securities watchdog slowed down on approving A-share initial public offerings (IPOs), in a bid to quell liquidity drain and market volatility.

The China Securities Regulatory Commission (CSRC) green-lit only four IPOs last week, after cutting down approved cases from 10 to 7 in the previous week.

The four companies will raise no more than 1.5 billion yuan ($220 million), plummeting from the 2.3 billion yuan approved a week earlier, according to statements from the CSRC. Dining chain Guangzhou Restaurant Co and chemical material manufacturer Tangshan Sunfar Silicon Industry Co will list on the Shanghai main board.

Despite the slowdown on approval, the A-share market is not expected to see an overall hiatus on new share issuance, reported China Business News citing a source close to the matter.

The IPO curb reflects the regulator's determination to stabilize market expectations in the midst of potential risks such as share pledge, Wang Sheng, chief strategic analyst with Shenwan & Hongyuan Securities, told the newspaper.

The move comes as lock-up shares worth about 50.75 billion yuan are becoming eligible for trading this week.

According to A-share rules, major shareholders must wait one to two years before they are permitted to sell their shares.

The CSRC has recently added restrictive measures on stock-selling by big shareholders. Shares transferred through block trades should be below 2 percent of a company's total in any 90 days, under the new rule.

The CSRC has approved 199 IPOs to raise no more than 100.4 billion yuan so far this year.

Tan Xinyu contributed to this story.

Today's Top News

Editor's picks

Most Viewed

China Daily Website - Connecting China Connecting the World
USEUROPE AFRICAASIA 中文Français

Sorry, the page you requested was not found.

Please check the URL for proper spelling and capitalization. If you're having trouble locating a destination on Chinadaily.com.cn, try visiting the Chinadaily home page

BACK TO THE TOP
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US