China allows 2 new firms to go public

BEIJING, April 14 (Xinhua) -- The China Securities Regulatory Commission (CSRC) approved the IPO applications from two companies Friday.

They are allowed to raise up to 3 billion yuan (477 million U.S. dollars), the CSRC said in a statement.

Both companies, an automobile parts producer and a pharmaceutical service provider, will be listed on the Shanghai stock exchange.

The firms and their underwriters will confirm IPO dates and publish prospectuses following discussions with the exchanges.

Under the current IPO system, new shares are subject to approval from the CSRC. China is gradually switching from an approval-based IPO system to a more market-oriented one based on registration. Enditem