China to resume IPOs as it winds down emergency measures

“But the government has to proceed with market reform and the timing for IPOs will be better now than next year as the market seems to have a few strength”.

A group of state entities is believed to have spent tens of billions of dollars buying shares to prop up prices.

Every said that he remained cautious on the outlook for mainland equities.

David Morrison, market analyst at SpreadCo, said: “It’s good to hear that China’s regulators are making an effort to restore confidence in the market structure”.

The Shanghai Composite Index has surged 17.6 percent in the past month.

The news of the resumption of public listings comes on the heels of a technical rebound in the A-share market.

Those 10 companies will go back into the IPO process first, Deng said, adding that they may need about two weeks to go through a few legal procedures.

The CSRC told a news conference it had also punished investors involved in illegal market manipulations.

Before the stock market started tumbling in June, Chinese authorities had endorsed the use of equity financing as an alternative to debt, which becomes more hard for many companies to repay as economic growth slows. Due to sharp market fluctuations, the Shanghai and Shenzhen stock exchanges said that 28 scheduled IPOs would be suspended.