Securities regulator may suspend reviews of property IPOs
October 24, 2007
[photopress:finance_panic_selling.jpg,full,alignright]It has been strongly suggested that the China Securities Regulatory Commission (CSRC) has stopped reviewing the IPO applications of property companies. This was reported in the China Business newspaper citing sources close to the matter.
The report said the suspension is indefinite and that the CSRC also expected to investigate the back door listing plans of domestic property companies.
The report added that property companies have been informed of the suspension, with some now planning to list in Hong Kong instead of the Mainland.
Earlier, China asked commercial banks to restrict lending to property companies, in an apparent bid to curtail sources of financing amid an overheating market. This latest move probably has the same aim.