Companies planning to launch an initial public offering in China may face rejection after the China Securities Regulatory Commission tightened approval procedures for new share offerings, reports the South China Morning Post.
According to the Post, the regulator reviewed seven applications last month and approved only four of them.
"The pace of IPOs is closely related to the market movement," says Haitong Securities analyst Zhang Qi. "The regulator is likely to further tighten approval procedures amid a troubled market."
The mainland was the world's largest IPO market with a record 349 companies raising 478.3 billion yuan (HK$566.05 billion) last year, says the Post.
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