SHANGHAI Dec 24 China has started to run checks
on the more than 800 companies that have applied for domestic
share sales, the latest move aimed at shortening the IPO waiting
list and ease pressure on the stock market, the official China
Securities Journal said.
The move comes days after China lowered the barriers to
overseas listings, and launched a pilot scheme allowing some
brokerages to trade over-the-counter in unlisted shares, an
effort to broaden Chinese companies' financing channels.
Stock market watchdog the China Securities Regulatory
Commission (CSRC) has started to scrutinise IPO applicants,
including examining their application materials and financial
authenticity, and will disqualify unsatisfactory applicants, the
newspaper reported on Monday.
The CSRC has said it wants Chinese companies to list
overseas, sell bonds or trade on over-the-counter equity markets
as regulators keep a tight grip on supply, as a result of
concerns about the strength of the stock market.
More than 800 Chinese companies are currently seeking
approval to list on the Shanghai or Shenzhen exchanges, aiming
to raise an estimated 500 billion yuan ($80 billion) in total,
Ernst & Young said earlier this week.
That means Chinese companies may need to wait up to five
years to launch a domestic IPO, a queue which was likely to
prompt some to turn to Hong Kong, the accountancy firm said.
(Reporting by Samuel Shen and Melanie Lee; Editing by Daniel