Off the wire
• U.S. stocks open higher on strong jobs report  • Brisk U.S. job data likely to push Fed raise rates in Dec.  • Malawi president appeals for more humanitarian assistance  • Roundup: Macedonian leaders reach compromise to solve political crisis  • Roundup: Arrivals, fatalities of Mediterranean migrants still on rise  • China Focus: Property developers turn to domestic bonds for money  • Xinhua world news summary at 1530 GMT, Nov. 6  • Re-elected Belarus president pledges balanced foreign policy  • China to continue with prudent monetary policy  • 1st LD: China, Singapore agree to lift ties, upgrade FTA  
You are here: 　 Home

3rd LD-Writethru-China Focus: China to restart IPOs

Xinhua, November 7, 2015 Adjust font size:

China will restart initial public offerings (IPO) after suspending them in July in the wake of a stock market rout which began in the middle of June, the securities regulator said Friday.

Deng Ge, spokesman with the China Securities Regulatory Commission (CSRC), told a press conference that 28 companies will be allowed to go public before the end of this year.

Due to sharp market fluctuations, the Shanghai and Shenzhen stock exchanges said in early July that 28 scheduled IPOs would be suspended. Among them, 10 companies that had accepted subscriptions for their shares were required to refund the money to investors.

Those 10 companies will get back into the IPO process first, Deng said, adding that they may need about two weeks to go through some legal procedures.

"The other 18 companies will go public before the end of this year," he said. The CSRC will also resume IPO approval meetings with reasonable pace.

The stock market has entered a stage of self-restoration and self-adjustment and the IPO will help invigorate the market to resume and maintain a reasonable supply of new shares, Deng said.

The CSRC will further reform IPO policies, he said, offering no specific details.

IPOs in China were suspended in July after the main market index plunged 30 percent from its June 12 peak.

China has taken extraordinary measures to contain plunges in recent months, including a ban on stockholders who hold more than five percent of a listed firm from selling shares, pouring in funds and cracking down on short selling

The CSRC has also cracked down on violations in the securities market.

In the latest move, it has placed administrative monitoring measures on three securities brokers, one fund company and three branches of fund companies, including a ban on opening new securities accounts, Deng said.

The CSRC has stepped up punishment on violations in the new third board, an over-the-counter market for growth enterprises. Investigations into six cases have finished, Deng said.

Chinese stocks performed well this week, with the Shanghai Composite Index rising 6.1 percent to 3,590 points, thanks to sharp gains in the last three days. The index rebounded more than 20 percent from an Aug. 26 low, bringing the market back into a technical bull territory, but is still about 30 percent down from the June peak.

The stock market experienced a dramatic summer with the Shanghai index down by over 40 percent from its June peak of 5,166 points. Wild swings have continued despite government efforts to restore confidence. Endi