China’s CSRC ends freeze on IPOs

02 December 2013   Category: News, Asia, China   By Asia Asset Management

The China Securities Regulatory Commission (CSRC) is poised to lift the one-year ban on new listings by issuing a reform plan for initial public offerings (IPOs).

The CSRC said on its website on November 30 that around 50 companies are expected to complete IPO approval procedures, becoming ready to list by the end of January. There are another 760 enterprises in the line for approval, which the CSRC estimates will take a year to audit.  

The approval procedure will stress eligibility and compliance among applicants. The valuations and risks of stocks will be determined by investors, with market prices reflecting supply and demand more genuinely, the statement said.

Separately, the CSRC will bring in a string of measures to further regularise IPO activities; including the introduction of a suspension mechanism for the first day of trading day to curb market speculation.    

The Chinese regulatory watchdog halted new listings in October 2012 due to widespread market volatility at the time.