Commission Clarifies News on IPO Shutdown
The Chinese securities regulator has denied rumors that the country initial public offering market has been shut down. The clarification of the rumor came after the China Securities Regulatory Commission in March that suggested that companies are planning an IPO must choose a reasonable timing on their IPO application.
The securities regulatory commission responded to questions that was raised by the market which is either mandatory or does not mean that the IPO application window is shutting down. These suggestions were done in last March and according to regulators there are still a large number of IPO applications that are in need of approval along with new applicants that will have to wait for a long period.
The new rules that govern the IPOs also resulted in stricter requirements for giving out information disclosure and gave more responsibilities to the issuer and sponsor by the CSRC two week ago. The CSRC is reminding issuers and sponsors the current special circumstances and are suggesting that they choose the right equity trading market for them.
This will help avoid a already worsening and crowded IPO channel, and companies that have decided to file for an IPO application must give time for it to mature to avoid any extra cost and burden.