2nd batch of new A-share listings may land on exchanges in April

The second batch of initial public offerings in the A-share market may start in early April after the securities regulator refined measures for the new share-listing reform plan, industry experts said.

Some securities firms received notices from the Shenzhen and Shanghai stock exchanges to test the system for the trading of new share listing this week, according to those with knowledge of the matter.

"There are many companies eager to raise funds from the stock market so restarting IPOs in April is necessary," said Hong Hao, managing director and chief strategist at BOCOM International Holdings Co Ltd.

A first batch of companies finished all necessary IPO procedures and went public starting in January after a yearlong freeze, but the China Securities Regulatory Commission suspended the IPO examination and approval processes in the same month.

No new company has been accepted by the regulator this year. The most recent approval was given to Wuhan Nusun Landscape Co Ltd on Dec 6 last year, according to statistics released on March 20 by the commission.

According to the statistics, 685 companies had been in the line for being approved to go public, of which 170 were planning to list on the Shanghai Stock Exchange, while 515 planned to list on the Shenzhen Stock Exchange.

Among them, 27 companies had completed all examinations and had been approved by the regulator, including Qiaodan Sports Co Ltd and Sinoma Energy Conservation Ltd, for listing on the Shanghai exchange.

AVIC Culture Co Ltd and Shanghai Beite Technology Co Ltd were among companies approved for listing on the Shenzhen exchange.

A further 18 companies terminated their examination and approval processes this year.

"The CSRC ordered the suspension to optimize the measures for the new share-listing reform plan after problems appeared among the first batch of companies," said Li Yizheng, a vice-president at China Securities Co Ltd.

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