In a move to avoid an influx of fresh equity amid a downturn, China's securities regulator will slow down on reviewing initial public offering applications, a rare situation since the China Securities Regulatory Commission reopened the IPO market in July 2009, reports the South China Morning Post.
This week, the regulator will review only Great Wall Motor's IPO application. Normally the committee reviews about eight IPOs a week, notes the newspaper.
According to the Post, the regulator has in the past suspended or slowed IPO approvals amid market downturns to bolster investor confidence while accelerating review procedures to drain liquidity out of existing stocks when the key indicator surges.
MORE ARTICLES ON IPO