China's securities regulator unveiled a short list of companies applying for listing in the small hours of Saturday, signaling a restart of the initial public offering (IPO) review that has been suspended for over a year.
A total of 28 companies appeared on the list, 16 for the main board of Shanghai Stock Exchange, 4 for small and medium-sized enterprises board in Shenzhen and 8 for the ChiNext Board, data from China Securities Regulatory Commission (CSRC) showed.
The move, the first preliminary information disclosure from the pre-listed companies since October, 2012, indicated the authorities are likely to resume the IPOs soon.
However, the list may not necessarily grant the companies access to the capital market, as the applications were still subject to approval of the CSRC.
A spokesperson from the CSRC said on Friday the commission has streamlined the process of IPO review, especially the information disclosure which was moved up to before the primary review. The adjustment aims to improve the transparency, dubbed as part of the efforts to intensify regulation.
As of Thursday, altogether 606 companies were waiting for listing on the country's two bourses, data from the CSRC said.
The stock market is expected to react strongly on the next trading day as the IPO restart may increase the financing pressure on the country's A share market.
Regulator reveals list of companies planning to float
China's securities regulator on Saturday released draft prospectuses for a small group of companies planning to get listed, in a move that may soothe investor concerns that the country had put in place a de facto freeze on IPOs.
The 28 prospectuses, published on the website of the China Securities Regulatory Commission (CSRC), included Well Lead Medical, a medical equipment firm based in Guangzhou, capital of South China's Guangdong Province; Hangzhou Weiguang Electronic Co, which makes motors for electric fans; and SEC Electronic Machinery Co, a motor maker based in Wuxi, a city in East China's Jiangsu Province.
Sixteen of the companies on the list are applying for the main board of the Shanghai Stock Exchange, eight for the ChiNext Board and four for Shenzhen's small and medium-sized enterprises board, according to data on the CSRC website.
However, the list may not necessarily grant the companies access to the capital market, as the applications are still subject to the approval of the CSRC and it is unclear whether, or when, the companies will be approved to float.
A spokesperson for the CSRC said on Friday that the commission had streamlined the process of IPO reviews, especially for information disclosure.
The adjustment aims to improve transparency, and is part of the efforts to improve regulation of the stock market.
No new companies have listed for nearly two months since the last listings in Shenzhen of three companies on February 19, leading media reports to speculate that an informal freeze is in place.
The CSRC told investors last week that China had not closed its window for IPO applications.
China allowed initial public offerings to resume in early 2014 after a hiatus of 14 months, allowing around 50 companies to get listed on the Shanghai and Shenzhen stock exchanges.
As of Thursday, a total of 606 companies were waiting for a listing on the country's two bourses, data from the CSRC showed.
China's mainland stock exchanges are expected to react strongly as the IPO restart may increase the financing pressure for stocks in the country's A-share market.
