SHANGHAI, April 21 China resumed initial public
offerings in January after a 14-month suspension, with 45 firms
floating shares and raising a combined 32.1 billion yuan ($5.3
billion) in the month.
To support the resumption, the China Securities Regulatory
Commission (CSRC) launched a slew of reforms in November but has
been forced to pull back some and add new restrictions so as to
curb irregularities, leading to dozens of firms postponing IPOs,
although some have later re-launched IPOs after adjustments.
Here are the major events and setbacks for IPO reforms.
(For a FACTBOX of the reforms, click ; for
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Nov 30 - The CSRC announces a slew of IPO reforms to boost
the market to pave the way for IPO resumption in January, saying
about 50 firms to be listed in the month.
Dec 14 - The CSRC issues fresh details on the reforms,
eliminating pricing and turnover curbs for IPOs.
Dec 31 - Five companies publish share issue prospectuses to
launch IPOs in January.
Jan 8 - Zhejiang Wolwo Bio-Pharmaceutical Co and
Guangdong Xinbao Electrical Appliances become the
first two IPO candidates to float shares, attracting heavy
Jan 10 - Drugmaker Jiangsu Aosaikang Pharmaceutical Co
announces it will postpone its IPO due to problems
including setting the issue price too high and trying to sell
too many existing shares in the IPO.
Jan 12 - The CSRC says that any company that prices its IPO
at a premium to its industrial peers in the secondary market,
measured by the respective price-to-earnings (PE) ratios, must
delay opening subscriptions to retail investors by three weeks.
Jan 13 - Five firms say they have postponed IPOs in response
to the latest CSRC rules.
Jan 14 - Three companies decide to sell shares at valuations
much lower than those of peers.
Jan 15 - The CSRC says it has begun inspections of IPO
pricing behaviour, targeting 13 underwriters and 44
Jan 17 - Prices of Neway Valve shares rise 43.5
percent on the first day of trading on the main Shanghai Stock
Exchange in the mainland's first listing since the IPO
Jan 18 - In a rare case, Gansu Hongliang Leather Co
announces it has put off its issue because of
questions from the media about its financial data, including its
Jan 20 - Shaanxi Coal Industry Co raises 4
billion yuan ($661 million) in China's largest IPO since 2012,
but cuts its fund-raising target by more than half partly
because of the new regulations on pricing.
Jan 21 - Eight companies list on China's smaller Shenzhen
Stock Exchange, the first listings on the bourse since IPOs
resumed. All hit their daily limit-up levels and many continued
jumping to limit-up in the following few days, reflecting huge
speculative interest among Chinese retail investors in small
Jan 26 - Zhejiang Wolwo and Chengdu Tianbao Heavy Industry
Co announce trading in their shares to be suspended
indefinitely after media reports alleged irregularities in their
Jan 27 - CSRC Chairman Xiao Gang admits that problems have
appeared in the new IPO reforms, but reaffirms that the
government will maintain market-oriented directions for reforms
of the stock market.
Jan 27-29 - At the peak of new listings since the IPO
resumption, 24 firms list in the Shanghai and Shenzhen bourses
over three days. Shaanxi Coal jumps in its Shanghai debut on
Jan. 28, but plunges from the second day to near its IPO price,
reflecting an investment culture shunning large-capitalisation
Feb 25 - The Shanghai stock exchange says it will
investigate investment funds that purchased excessive amounts of
shares during the IPO of Foshan Haitian Flavouring and Food Co
March 27 - The CSRC makes a statement on its official
microblog advising companies to choose the appropriate time to
IPO, and encouraging them to list abroad or on OTC platforms.
The statement is seen by many as an indication listings may be
about to freeze again.
April 11 - The CSRC denies the IPO process has been once
again frozen at a regular news conference.
April 16 - Sources confirm to Reuters that the CSRC has
ordered underwriters to update application materials for firms
waiting to list, raising hopes that IPOs may resume soon.
(Reporting By Lu Jianxin and Natalie Thomas; Editing by Kenneth