China IPO market resumes after four-month hiatus
SHANGHAI (Reuters) - Seven Chinese firms launched mainland initial public offerings on Tuesday, marking a resumption of China's IPO market after a four-month hiatus.
The offerings come after the China Securities Regulatory Commission (CSRC) said late on Monday it had given final approval to 10 firms seeking to list on the Shanghai or Shenzhen stock exchanges.
The companies including Guangdong Ellington Electronics Technology, Shanghai Beite Technology and Shanghai Lianming Machinery, published their prospectuses in newspapers on Tuesday. Of the seven, three will list in Shanghai and four on the smaller Shenzhen exchange.
The CSRC let around 50 companies list in January and February, marking the end of a suspension of IPO approvals that began in late 2012 but was never officially confirmed.
However, there had been no listings since then and the CSRC had not clarified the situation.
Prior to the resumption, the CSRC had said it was aiming to transform the IPO market to a registration-based system similar to that deployed in the United States, where market reception dictates how offerings are priced, when companies list and how their shares perform.
Many investors read this as a signal that Beijing was preparing for a flood of new issuance this year.
Global accountancy firm PwC said in a report released on Jan. 2 that the number of IPOs could "possibly reach a record high in 2014", raising as much as 250 billion yuan ($40.24 billion).
However expectations have been scaled back and the CSRC said last month it is planning about 100 IPOs for the rest of this year.
(Reporting by Shanghai Newsroom and David Lin; Writing by Kazunori Takada; Editing by Stephen Coates)