Moratorium on Chinese IPOs lifted as stock markets rally

Chinese IPOs: The China Securities Regulatory Commission (CSRC) is to lift the moratorium on IPOs that it imposed in July, spokesman Deng Ke told a press conference last Friday. 28 companies are to be authorised to float their shares,  10 of which had already accepted subscriptions when the suspension was imposed, obliging them to refund would-be investors. Among the companies expected to take advantage of the relaxation are Readers Publishing Media, Shenyang Taoli Bread and Anji Food.
The announcement coincides with a rally in the stock markets which appears to have convinced the government that the worst is over after some indices slumped by as much as 40% from their mid-June peak. The benchmark Shanghai Composite Index rose by about 6% this week to its high level since the third week in August. 
“It is a smart time to announce the resumption as the market has been up for a couple of days,” Construction Bank International’s Peter Li told Finance Asia. “There are so many companies waiting in the pipeline. “The government wants them to raise money from the equity markets, which is cheaper [than banking loands]. They [the authorities] cannot keep them all waiting.”

Source: globaltimes