CSRC trial committee tightens scale of IPO review
Three of six companies that applied for Initial Public Offerings were rejected on Tuesday, as passing rate dips to 64%
The China Securities Regulatory Commission rejected three out of six IPO requests on Tuesday, tightening control of the country’s public listings, the China Securities Journal reported.
The three companies that were rejected were Harbin Senying Window Industry, Haining China Textile City and Steady Medical Supplies.
Source of Home was put off for a vote, while the IPO applications of Mona Lisa Group and Xin Guang Green Ring Renewable Resources were passed.
As a result, the total rejected IPO applications this year reached 59, while the number of enterprises that were put off to vote also increased to 19, the report added.
According to China Securities Journal, since the establishment of the new trial committee a month ago, it has reviewed 25 IPO applications starting from October 17, of which six were rejected, three were put off for vote and 16 were passed. The passing rate was 64%.
“From the audit point of view, the IPO review has become more and more strict. This is an important manifestation of the capital market,” an unnamed investment banker based in Shanghai said.
“It has also sounded the alarm for companies that ran based on luck. If the company doesn’t have enough internal strength, pure luck would be impossible in the coming IPO.”