China To Resume IPOs

After suspending the public listings since early July, the China Securities Regulatory Commission has reportedly announced that it will resume initial public offerings.

According to a Reuters report, China’s securities regulator made the announcement at a weekly news conference in Beijing on Friday.

The IPOs were suspended following the stock market rout that wiped out billions of dollars in the global stock market, surprising analysts who earlier said China’s IPO market will unlikely reopen this year.

Globally, the number of IPOs completed in Q3 of this year was down 55 percent from the previous quarter.

Volumes in dollar terms also dropped by a whooping 75 percent, according to an EY report.

A total of 63 IPO were withdrawn or postponed in Q3, compared to just 42 during the same period last year.

Chinese stocks performed well this week, after market sentiment was bolstered by the recent announcement of proposals for China’s development blueprint for the next five years.

On Friday, the benchmark Shanghai Composite Index went up 1.91 percent to hit 3,590.03, the highest since Aug. 21. The smaller Shenzhen index gained 2.79 percent to close at 12,273.35 points.

Total turnover on the Shanghai and Shenzhen bourses stood at 1.17 trillion yuan (185 billion U.S. dollars), slightly down from 1.37 trillion yuan the previous trading day.- BusinessNewsAsia.com

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