Date
30 March 2017
Around 670 firms are waiting for government approval to raise a combined US$63 billion in initial public offerings. Photo: Bloomberg
Around 670 firms are waiting for government approval to raise a combined US$63 billion in initial public offerings. Photo: Bloomberg

China sets two-year goal for loosening IPO controls

China aims to restructure its mechanism for initial public offerings within two years to make it easier for companies to sell shares on its stock exchanges.

The plan will allow companies to launch an initial public offering after registering their plans, the Wall Street Journal reported, citing a statement from the State Council, the country’s cabinet.

Beijing has long been planning to introduce a registration-based IPO system, but a plan to adopt it this year was derailed by the stock market chaos in the summer, which prompted the government to suspend IPOs in July.

Currently, around 670 companies are waiting for the government’s green light to launch an IPO on either the Shanghai or Shenzhen stock exchange, the Journal said.

Those companies aim to raise a combined US$63 billion, the report said.

On Wednesday, three companies on the Shanghai exchange and another three in Shenzhen exchanges launched the first Chinese IPOs in five months, raising nearly 2 billion yuan (US$312.8 million).

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