One third firms exit tighter pre-IPO checks

BEIJING -- About one third of Chinese firms lining up for initial public offerings (IPOs) have sounded the retreat since the securities watchdog tightened checks before restarting IPOs.

China Securities Regulatory Commission (CSRC) said among 622 enterprise which have filed IPO applications, 268 have withdrawn, according to Saturday's Shanghai Securities News.

The new checking regime began at the end of last year and includes self-checks of financial statements by underwriters and accounting firms, and spot checks by the the CSRC.

IPOs on China's Shanghai and Shenzhen stock markets have been suspended for nearly a year. Market expectations have climbed in anticipation of the resumption.

The CSRC takes an active but prudent attitude toward IPOs on the Chinese stock market, a spokesman of the CSRC said in late September.

The CSRC began seeking public opinion in June on IPO reform. The plan provides greater freedom in launch timing, as well as pricing of new stock issues by allowing qualified individual investors to participate in offline placements.