47 Chinese firms withdraw their IPO plans

The China Securities Regulatory Commission (CSRC) has tightened rules on share listings in a bearish market, leading to 47 companies have withdrawn their initial public offering (IPO) plans in China this year, Bloomberg reported on Monday.

Under the leadership of new chairman Wu Qing, the CSRC has sought regulatory opinions from market participants and imposed fines on a company for fraudulent listing, the statement added.

The crackdown on fraudulent listings has resulted in a record number of IPO withdrawals in China. The country’s once-dominant share sales have slowed due to phased restrictions aimed at promoting a “dynamic equilibrium” between investment and financing.

Last year, 313 companies completed IPOs in China, raising a total of 356 billion yuan ($49.5 billion), down from 424 IPOs and 587 billion yuan raised in 2022, according to the statement.

The Shenzhen Stock Exchange recently terminated IPO plans for appliance maker Ningbo Borine Electric Appliance Co and diagnostics firm Fapon Biotech Inc, after the firms requested to withdraw their listing applications.