China’s IPO markets could remain closed throughout 2013 because the IPO regulatory reforms are still in need of adjustments and improvements, according to a local report, citing a number of industry insiders.
One source said the IPO markets will remain closed at least until November, when the Third Plenary Session of the 18th Central Committee will be held, according to a First Financial Daily report.
Chinese regulators never set an official timetable for restarting the listing process. However, last month, local media reported that the IPO market would likely open in October as regulators needed more time to work on revamping regulations and implementing a new system for issuing shares.
In August, China had 748 IPO applicants, according to the China Securities Regulatory Commission.
In September 2012, Chinese media revealed fraud at a company approved for listing and claimed that both regulators and investors had been fooled by the group’s headline story and financials. It became a major embarrassment to the CSRC, which froze the IPO process in October and announced a reform of the listing system.