Regulators to Continue IPO Approvals Even with Suspension
The country’s top securities regulators stated that it will be continuing with its approval procedures for all initial public offerings as it is confirmed that there will be no IPOs approval in the near term. According to a spokesperson for the China Securities Regulatory Commission that no IPOs will happen in the near term but approvals will continue to those with existing applications.
An agency will take control of the number of companies that are seeking to refinance using a secondary offering together with a refinancing value. Based on a statement after 28 companies announced that they are suspending their IPO plans due to sharp volatility of the stock market in the past several weeks. Meanwhile the Shanghai index lost 28 percent of its value since the bull run ended with a peak of 5,178 points last June 12.
At this point the government stepped in with various measures in order to save the market which included pouring in funds and restricted future trading in a major small cap index. The Key stock index of China is staging a strong rebound for a second consecutive try on Friday with a backing of supportive measures and a benchmark Shanghai Composite Index surges 4.54 percent to end with 3,877 points.