China's IPO Approval Rate Falls to 55 Percent Since Examination Committee Set Up, Three IPOs Rejected in One Day(Yicai Global) Nov. 30 -- The China Securities Regulatory Commission's (CSRC) new Issuance Examination Committee (IEC) turned down applications from three companies for initial public offerings (IPO) on the A-share market yesterday, representing the first time that a zero-pass rate has been registered at the commission, China Securities Journal reported yesterday.
The overall pass-rate for IPOs has fallen to 55.73 percent since the establishment of the IEC on Oct. 17, with 34 applications approved, 22 denied, and 5 postponed.
The A-share IPO pass rate was 80.9 percent in the first three quarters of this year. The quality control of listed companies has become a key regulatory focus for the CSRC, and the low pass rate might now be a normal state, industry insiders said.
IPOs will continue to maintain a medium-to-high speed of development, despite the controls, with the number of IPOs expected to remain in the 450 to 500 range next year, a securities company said.
The number of A-share IPOs has reached 385 as of Nov. 21 this year, exceeding the highest record of 344 in 2010. The total amount of funds raised by IPO has reached CNY194.45 billion (USD29.42 billion) this year, surpassing last year's total.
