According to South China Morning Post,China is to resume initial public offering approvals after a four-month hiatus, the China Securities Regulatory Commission said Friday.
The initial public offering market was frozen on July 4 amid volatile market conditions.
Deng Ge, the spokesman of the CSRC said the authority would give IPO approval to 10 companies in the next two weeks, according to a report by the People’s Daily-affiliated Cailianpress on Friday.
Michael Every, head of financial markets research at Rabobank, said the action was a further sign that market conditions have recovered from the nightmarish plunge over the summer.
“It was a logical thing to do when markets were falling,” Every said in reference to the original decision by authorities to suspend new listings.
The news of the resumption of public listings comes on the heels of a technical rebound in the A-share market. The benchmark Shanghai Composite Index has rebounded 20 per cent since August 26.
Every said that he remained cautious on the outlook for mainland equities.
“Temporarily we are back in a bull market, and to be frank god knows why,” he said. “The fundamentals are getting worse and earnings are going down which you should be looking at.”
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