Business / Markets

Verification starts for IPOs on mainland market

By Xie Yu (chinadaily.com.cn) Updated: 2012-12-24 16:59

The China Securities Regulatory Commission has restarted verification of companies that apply for IPOs on the mainland market, the China Securities Journal reported on Dec 24.

More than 800 companies are on the waiting list for the background check they need before they can go public. The companies aim to raise a total estimated 500 billion yuan ($80 billion), Ernst & Young said.

The CSRC has started to scrutinize IPO applicants, including examining their application materials and financial authenticity, and will disqualify unsatisfactory applicants, the CSJ reported.

China's A-share market has slumped severely this year, hitting a four-year low in November. The securities regulator has slowed down checks and approvals of new listings. Some companies have already turned to Hong Kong or overseas markets instead.

The authority announced a specific plan to lower the barriers to overseas listings last week, and launched a pilot program that allows some brokerages to trade unlisted shares, an effort to broaden Chinese companies' financing channels.

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