China's top securities regulator declined the initial public offering application of South Beauty Co, a Beijing-based restaurant chain operator, according to a list released by the China Securities Regulatory Commission (CSRC) on Jan 30, China Business reported Monday.

Zhang Lan, Chairwoman of South Beauty, told the newspaper that the result was not surprising as the CSRC tightened its approval requirements for IPOs by restaurants earlier.

In 2011, the CSRC planned to raise the requirement for annual profits for restaurant operators seeking IPOs from 30 million yuan to 50 million yuan. A higher requirement for the growth rate, net assets and profitability of the companies has also been enforced, the newspaper said.

The failure of the IPO of South Beauty cools down investment in the restaurant industry. Statistics show that the amount of investment in the food industry has hit a historically low point, according to the report.