China not "shutting down" IPOs: securities regulator

Xinhua
16 Sep 2023, 02:05 GMT+10

BEIJING, Sept. 15 (Xinhua) -- The China Securities Regulatory Commission (CSRC) and stock exchanges did not suspend the acceptance, review, and registration of initial public offerings (IPOs), and there is no "shutting down" of IPOs or refinancing activities of listed companies, the country's securities regulator said in an online statement on Friday.

The CSRC has been enhancing its countercyclical regulation in the primary and secondary markets. While considering the capacity of the secondary market to withstand new issuances, the CSRC moves to maintain a regular pace of new stock listings scientifically and rationally to promote coordinated and balanced development between the primary and secondary markets, according to the statement.

The recent tightening of the pace of IPOs is a measure to ensure the stable operation of the market, said CSRC.

The CSRC has denied the statement of raising IPO thresholds, saying that the positioning, issuance, and listing conditions, as well as information disclosure requirements across different boards, have not changed.

The recent IPO withdraws are mainly due to factors affecting the companies' sustained operations, including unstable owner control and declining performance, the CSRC said.

In terms of supporting the development of sci-tech companies, the CSRC said that it is currently studying and formulating an action plan to aid high-level scientific and technological self-reliance in the capital market.

The CSRC said it has maintained strict quality control in the review of IPO applications.

Since introducing registration-based IPOs, the CSRC has implemented stricter, more transparent, and more prudent supervision of IPOs, the securities regulator said, adding that it adopted a high-pressure approach and a zero-tolerance attitude towards financial fraud.