Chinese small and medium-sized banks have stepped up their pace in going public to meet growing capital demand from rapid business expansion and tightened regulation. There were 12 banks waiting for IPO approval from the country’s securities regulator, the second group to enter the stock market after entry was reopened for banks more than a year ago. Nine were city banks, including Bank of Lanzhou and Bank of Changsha, while three were rural commercial banks. Six posted double-digit growth in net profit in 2016 despite a lackluster banking sector, while Bank of Chengdu saw an annual drop of 8.48%. Unlike bigger peers, small and medium-sized banks often face difficulties in meeting regulatory requirements in capital adequacy, which is a precondition for business expansion. Bank of Xian improved its total assets by 3.78% from a year ago in 2016, but its capital adequacy ratio dropped 1.2%. The IPOs will allow banks to secure more financing channels, including private placement and preferred stocks to replenish capital, analysts said.