(Yicai Global) Jan. 24 -- Wenzhou Kangning Hospital Co.'s bid to become China's first hospital to go public on the A-share market has been postponed after regulators turned down its application citing outstanding questions on the transfer of assets.

The Issuance Appraisal Committee, part of the China Securities Regulatory Commission, questioned why the company, located in eastern Zhejiang province, had written off some assets and transferred others to affiliates.

Kangning Hospital, the country's largest private hospital for mental health treatment, is the only private mental asylum to receive a Class-A rating. The company planned to go public on the main board of Shanghai Stock Exchange with the issuance of more than 811.55 million new shares worth CNY193 million (USD30.1 million).

The firms will now look to other means to raise the funds, saying the rejection will not adversely impact its financial condition or operations.

Regulators turned down six out of seven IPO applications on Jan. 23. The A-share IPO pass rate has been on the decline ever since the committee's introduction in October, with 55.7 percent approved since then. The group has placed strict checks on profitability, financial data accuracy, related-party transactions and gross margin irregularities.