Chinese bourses have stopped over 40 IPOs in Shanghai and Shenzhen in the midst of a regulatory probe into advisors in the deals, as per official exchange publications.
The Shenzhen Stock Exchange suspended over 30 Initial public offerings, including public share sale plans by BYD Co’s chip unit, on Aug. 18, as per exchange filings. The Shanghai Stock Exchange suspended the eight Initial public offerings focusing on the city’s tech-centered STAR Market since Aug. 19.
The companies claim that the Initial public offerings’ suspension by the China Securities Regulatory Commission (CSRC) was due to an investigation into the activities of advisors including Beijing-based Tian Yuan Law Firm, China Dragon Securities Co, and CAREA Asset Appraisal Co.
The news was first detailed by Chinese media.
More detailed investigation on Initial public offerings started as Beijing launches a whirlwind of regulatory crackdowns against sectors ranging from the internet to tutoring.
On Monday, China said it would commence investigation into accounting firms in a battle against financial fraud, vowing “zero resilience” toward misconduct.
