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China starts background checks on IPO applicants: Report

Published on Dec 24, 2012 10:09 AM
China reportedly runs checks on more than 800 companies that have applied for domestic share sales. It is the latest move to shorten IPO waiting list. -- PHOTO: AFP 

SHANGHAI (REUTERS) - China has started to run checks on the more than 800 companies that have applied for domestic share sales, the latest move aimed at shortening the IPO waiting list and ease pressure on the stock market, the official China Securities Journal said.

The move comes days after China lowered the barriers to overseas listings, and launched a pilot scheme allowing some brokerages to trade over-the-counter in unlisted shares, an effort to broaden Chinese companies' financing channels.

Stock market watchdog China Securities Regulatory Commission (CSRC) has started to scrutinise IPO applicants, including examining their application materials and financial authenticity, and will disqualify unsatisfactory applicants, the newspaper reported on Monday.

The CSRC has said it wants Chinese companies to list overseas, sell bonds or trade on over-the-counter equity markets as regulators keep a tight grip on supply, as a result of concerns about the strength of the stock market.

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