China approves new IPOs, ending listing freeze

SHANGHAI Mon Dec 30, 2013 7:50pm EST

SHANGHAI Dec 31 (Reuters) - China has approved five firms to list on mainland exchanges, ending a freeze on initial public offering (IPO), as authorities look to reboot a reformed market in 2014.

Neway Valve Co Ltd, Truking Technology Ltd, Zhejiang Wolwo Pharma, Guangdong Qtong Education Co Ltd and Guangdong Xinbao Electrical Appliances Holdings Co Ltd have received official IPO approval, the five firms said in statements to mainland exchanges.

The IPO market has been frozen since authorities suspended listings in October 2012 to stamp out equity market fraud and restore confidence in domestic markets.

China's leaders have said new IPOs will be more investor-driven as part of wider economic reforms to open up the sector.

China said last month it would start to unfreeze domestic IPOs in early 2014 with around 50 firms set to complete the streamlined registration process by January.

The IPO freeze has helped China's stock market rally and some investors have aired concerns that a wave of new listings could direct money away from where it is needed in the world's second largest economy. (Reporting by Adam Jourdan and Shanghai Newsroom; Editing by Michael Perry)