The Shanghai Composite Index declined 1.5% at the close, dragged by financials and property stocks.
In what might be an unexpected move, China’s Securities Regulatory Commission (CSRC) on late Friday night published preliminary prospectuses of 28 Chinese companies that are planning IPOs. These companies include the state-owned Shanghai Film Corp., Beijing Digital Certification Corp., Beijing-based JCHX Mining Management Co., Anhui Jiuhuashan Tourism Development Co., etc.
It’s also the first time for the regulator to publish the draft IPO prospectus for any firm since October 2012. A “preliminary disclosure” such as this usually suggests the company is close to getting the regulator’s approval.
China allowed companies to resume IPOs in January after a 14-month pause. However, no firms have been listed since mid-February, sparking concerns that another IPO freeze might be put into place. Right now, there are still 606 Chinese companies on the waiting list of IPOs, according to data from the CSRC.
In Shanghai markets, China Minsheng Banking fell 2.2%, China Merchants Bank dropped 2%, and China Everbright Bank was off 1.9%.
Sinolink Securities declined 5.6%, CITIC Securities slid 4.1%, Haitong Securites lost 3.2%.
Among major developers, Metro Land tumbled 3.7%, Shanghai Shimao skidded 2.5%, and Poly Real Estate Group was down 2.3%.