CSRC to choose small caps for IPO resumption

The China Securities Regulatory Commission (CSRC) is set to choose a few small-cap firms to resume the allowance of initial public offerings (IPO) after a nine-month hiatus, the South China Morning Post reported. Sources close to the CSRC said that the regulator could approve the first group of listings as early as this weekend, with a launch of new share sales potentially before June 25. Although the CSRC had originally targeted either China Everbright or China State Construction Engineering to kick off the IPO resumption, it reportedly changed course over concerns of a possible large drop of the Shanghai and Shenzhen bourses. Sources said that Guilin Sanjin Pharmaceutical Group and Zhejiang Wanma Cable have moved the closest to floating small offerings on the SME board of the Shenzhen Stock Exchange with their underwriters merely awaiting approval from the CSRC.