Regulator reveals list of companies planning to float

By Reuters – Xinhua Source:Reuters - Xinhua Published: 2014-4-20 23:08:01

China's securities regulator on Saturday released draft prospectuses for a small group of companies planning to get listed, in a move that may soothe investor concerns that the country had put in place a de facto freeze on IPOs.

The 28 prospectuses, published on the website of the China Securities Regulatory Commission (CSRC), included Well Lead Medical, a medical equipment firm based in Guangzhou, capital of South China's Guangdong Province;  Hangzhou Weiguang Electronic Co, which makes motors for electric fans; and SEC Electronic Machinery Co, a motor maker based in Wuxi, a city in East China's Jiangsu Province.

Sixteen of the companies on the list are applying for the main board of the Shanghai Stock Exchange, eight for the ChiNext Board and four for Shenzhen's small and medium-sized enterprises board, according to data on the CSRC website.

However, the list may not necessarily grant the companies access to the capital market, as the applications are still subject to the approval of the CSRC and it is unclear whether, or when, the companies will be approved to float.

A spokesperson for the CSRC said on Friday that the commission had streamlined the process of IPO reviews, especially for information disclosure.

The adjustment aims to improve transparency, and is part of the efforts to improve regulation of the stock market.

No new companies have listed for nearly two months since the last listings in Shenzhen of three companies on February 19, leading media reports to speculate that an informal freeze is in place.

The CSRC told investors last week that China had not closed its window for IPO applications.

China allowed initial public offerings to resume in early 2014 after a hiatus of 14 months, allowing around 50 companies to get listed on the Shanghai and Shenzhen stock exchanges.

As of Thursday, a total of 606 companies were waiting for a listing on the country's two bourses, data from the CSRC showed.

China's mainland stock exchanges are expected to react strongly as the IPO restart may increase the financing pressure for stocks in the country's A-share market. 

Reuters - Xinhua

Posted in: Markets

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