China resumed initial public offerings after a suspension of almost four months, as seven companies set timetables for taking orders from investors.
Companies including Guangdong Ellington Electronics Technology Co., Shanghai Lianming Machinery Co. and Wuxi Xuelang Environmental Technology Co. plan to sell shares this month, according to filings to the nation’s two stock exchanges dated today. They are the first IPOs since February, when five companies including Dong Yi Ri Sheng Home Decoration Group Co. and LingNan Landscape Co. started trading, data compiled by Bloomberg show.
The China Securities Regulatory Commission said yesterday it approved 10 first-time share sales as the country’s stockbrokers bear the brunt of the worldwide tumble in equity volatility. Trading on the Shanghai Stock Exchange has slumped the most among the world’s 10 biggest markets this year, according to data compiled by Bloomberg.
“This has officially opened the floodgate of new share sales,” Dai Ming, who helps oversees about $193 million at Hengsheng Hongding Asset Management Co. in Shanghai, said today by phone. “The market will feel the pressure of increasing new stock supply, especially the smaller companies, as there’s no new money inflow to the market.”
More than 600 companies have submitted IPO applications and over 400 have published draft prospectuses, the China Securities Regulatory Commission said in a May 30 statement on its official microblog.
The securities watchdog plans to have about 100 IPOs from June through the end of the year and the stock sales will be evenly spread over time, CSRC Chairman Xiao Gang said in a statement on May 19. Some 48 companies completed listings in China this year after the regulator ended in December a 15-month freeze on IPOs, data compiled by Bloomberg show.
— With assistance by Fox Hu, and Shidong Zhang