Chinese regulators will resume processing applications for private share sales this week, signaling an easing of market curbs imposed during a $3.4 trillion equity rout, according to people with knowledge of the matter.
The China Securities Regulatory Commission will review no more than five applications on Friday and a maximum of 10 next week, said the people, who asked not to be identified because the matter is private. Initial public offerings will remain suspended, they said.
The government has suspended share offerings, restricted short-selling and allowed trading halts of more than 500 companies as the benchmark Shanghai Composite Index tumbled 29 percent from this year’s June peak. A total of 462 applications from mainland companies for private placements seeking to raise $168 billion are pending the CSRC’s approval, according to data compiled by Bloomberg.
Among companies planning offerings are Zhongrun Resources Investment Corp, which is seeking $4.6 billion, and Hainan Airlines Co., which wants to raise $3.9 billion, data show.
Mainland Chinese companies have raised $54 billion through 219 private placements this year, compared with $24 billion through 192 IPOs. More than 600 companies are waiting for the CSRC’s approval to hold IPOs, according to the regulator’s website.
The CSRC didn’t immediately respond to a faxed request for comment.
— With assistance by Heng Xie, and Fox Hu