Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Indexes  >  CHINA-Shanghai Comp       

News SummaryAll newsNews of the components 

China Regulator Says 16 Firms Withdraw IPO Plans

02/04/2013 | 01:25am US/Eastern

SHANGHAI--Sixteen companies have abandoned plans to list their shares on one of the nation's stock exchanges since late December, the China Securities Regulatory Commission said.

Eleven companies have withdrawn their applications to list on the start-up board and five firms had scrapped plans to list on one of the nation's two main boards, the regulator said in separate statements posted on its website Friday. It didn't explain the decisions or give details about the firms' financial performances.

But lengthy waiting periods for approval and a still weak stock market may have been factors in the decisions.

Since October, the CSRC halted all approvals for initial public offerings, citing concerns about a potential share glut that would further weigh on an already lackluster equity market. The regulator also heightened scrutiny of IPO hopefuls after the poor showing of some companies after they went public.

Official data show there were 873 companies waiting for IPO approval as of Jan. 31. The CSRC has asked underwriters and auditors working on possible share sales to submit inspection reports by March 31, effectively raising the regulatory threshold for new deals.

The slow pace of regulatory approvals for new listings in China is driving firms to consider other options, such as choosing an overseas venue or using smaller over-the-counter equities markets.

The companies that have given up plans for a public offer include titanium supplier Zunyi Titanium and tea producer Anxi Tieguanyin Group, both of which had planned to list on the Shenzhen stock exchange. A number of smaller technology firms were among those abandoning plans to join the start-up bard.

The benchmark Shanghai Composite Index slumped to nearly a four-year low in December and lost 31% over the past three years though it has rallied sharply in recent weeks.

Write to Esther Fung at esther.fung@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

React to this article
03:08p Euro on shaky ground, stocks up on talk of aggressive ECB easing
12:13pDJGlobal Stocks Rise With European Shares Hitting a Three-Month High -- 4th Upd..
10:11aDJGlobal Stocks Rise With European Shares Hitting a Three-Month High -- 3rd Upd..
08:14aDJGlobal Stocks Rise With European Shares Hitting a Three-Month High -- 2nd Upd..
05:36aDJGlobal Stocks Edge Higher -- Update
04:35aDJGlobal Stocks Rise, Led by Europe
04:18aDJGlobal Stocks Edge Higher
03:32aDJASIAN SHARES : Japan's Nikkei Flirts With 20000, but Falls Short--5th Update
03:24aDJASIA MARKETS : Nikkei Comes Close, But Fails To Retake 20,000 Level
02:59aDJASIAN SHARES : Japan's Nikkei Flirts With 20000, but Falls Short--4th Update
News chart
Full-screen chart