China is running background checks on more than 800 firms that have applied to make domestic initial public offerings, Reuters reported, citing the state-owned China Securities Journal. China Securities Regulatory Commission (CSRC), a stock market regulatory authority, has started to inspect the financial strength and application documents of companies that want to go public. Firms that fall below the required standards will not be able to engage in domestic share sales, according to a newspaper report published Monday. Some Chinese firms will have to wait up to five years to issue shares publicly, a delay that is likely to encourage some to pivot to the Hong Kong stock exchange, Ernst & Young said earlier this week. The measure aims to reduce the IPO waiting list, which has grown since regulators halted domestic offerings in October as China seeks to widen the financing sources of Chinese firms.