look news india
Mumbai: With the tightening of regulatory norms in China, many companies have postponed their plans for equity public offerings (IPOs) this year.
The China Securities Regulatory Commission sought regulatory input from market participants on stock listing standards in a bearish market and fined a company for fraudulent listing. The Commission has taken several measures to restore investor confidence even as China's main indexes have been volatile for the past five years.
In view of the regulatory measures, 47 companies have postponed their IPO plans so far this year, while 29 companies had postponed their IPO plans in the same period last year. Listed companies are being charged huge fines for accounting fraud.
The number of withdrawals from IPOs has reached a new high as a result of strict regulatory measures, a report said.
In 2022, Chinese companies raised 587 billion yuan through 424 IPOs, which declined to 356 billion yuan in 2023 through 313 companies.
Let us tell you here that Chinese authorities have recently announced several incentive measures to boost the country's stock market. The once-dominant selloff of Chinese equities in the global IPO market appears to be tapering off.