The Beijing Stock Exchange will review the initial public offering (IPO) application of an optical fiber and electronics manufacturer on June 17, making it the first IPO to be reviewed by the Exchange after a four-month listing drought, reports Caixin. Chengdu Uestc Optical Communications filed its IPO application in September and plans to raise RMB 150 million ($20.7 million) by issuing 10.58 million shares.
China is tightening criteria for IPO candidates as part of efforts to improve the quality of listed companies and arrest the protracted slump in share prices.
New guidelines, released by the State Council on April 12, known as the National Nine Articles, focus on improving oversight and regulation of the equity market. After their release, the China Securities Regulatory Commission (CSRC) published an updated checklist on April 30, which increases the random inspection rate for IPO candidates from 5% to 20%.