China’s regulator rejects the most number of IPOs in four years
June 19, 2017 Category Stock Markets, Weekly
The China Securities Regulatory Commission (CSRC) is rejecting initial public offering (IPO) applications at the fastest pace in four years, suggesting it is getting tougher on the rules introduced to improve the quality of listed companies while speeding up the approval process at the same time. Analysts believe the CSRC is seeking a balance between easing the logjam in the IPO pipeline and boosting investor confidence. They also regard the moves as paving the way for an overhaul that could in the longer term give the market more power over the listing process. By May 19, the regulator had approved 188 listings after reviewing 257 applicants since the turn of the year, “that’s a 73.2% pass rate”, CSRC Spokesman Deng Ge said. It is also the first time the pass rate has dropped below 80% since 2013, when the Commission put a blanket freeze on IPOs for more than a year during the stock market rout. According to accounting firm Grant Thornton China, the CSRC approved 247 new listings in 2016 out of 275 applicants, an 89.8% pass rate. In 2014 and 2015, the pass rate was 83.2% and 89%, respectively. Meanwhile, the pace of listing approvals has accelerated, with the number of approvals so far in 2017 exceeding 70% of the 2016 total. Deng also said the regulator “terminated” 35 IPO reviews and “rejected” 18 others between January and April mainly due to the discovery of “abnormal business operations or finances”.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world