Chinese companies lined up to IPO in a total of $63 billion


Moscow. December 8. About 675 Chinese companies are awaiting approval of the PRC authorities for an IPO, which total volume may be about $63 billion, writes the newspaper the Wall Street Journal.

In July of this year, the Chinese government suspended IPO, seeking to restrain the decline in the stock market. Despite the fact that since then the market has recovered, and authorities have lifted restrictions on carrying out IPO, many chronic problems remain, experts say.

One of the major factors constraining the placement of shares, is the strict control of regulators of the IPO process. Requirements for companies seeking to list shares, often discouraged them, and the consideration of applications for the IPO can last for four to five years.

The representative of the Commission on regulation of securities market of China (China Securities Regulatory Commission, CSRC) Zhang Saison notes that the restructuring of the system IPO is one of the priorities of the Chinese authorities. “Changes do not mean that the requirements will become weaker. They mean a shift in the process of reviewing applications and improved control methods placements,” he says.

However, according to him, changes may be made only by the pace with which is able to make the stock market of the PRC.

This clause suggests that the queue of companies planning to hold the IPO, are unlikely to disappear, experts say.

Only 28 Chinese companies will be able to complete an IPO before the end of 2015. All these offers were approved before the July suspension of IPO.

Since July, the queue for IPOs in China have recruited more than 80 companies, according to the WSJ.

The Shanghai Composite stock index has increased by 21% since the end of August, indicating the beginning of the “bullish” trend. Nevertheless, the indicator value is 30% below the peak level recorded in June.