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China halts over 40 IPOs amid regulatory probe into law firm, broker

China halts over 40 IPOs amid regulatory probe
China halts over 40 IPOs amid regulatory probe   -   Copyright  Thomson Reuters 2021
By Reuters

SHANGHAI – Chinese bourses have halted more than 40 initial public offerings (IPOs) in Shanghai and Shenzhen amid a regulatory probe into several intermediaries in the deals, according to official exchange disclosures.

The Shenzhen Stock Exchange suspended more than 30 IPOs, including public share sale plans by BYD Co’s <002594.SZ> chip unit, on Aug. 18, according to exchange filings. The Shanghai Stock Exchange has pressed the pause button on eight IPOs targeting the city’s tech-focused STAR Market since Aug. 19.

The companies attribute the IPOs’ halt to an investigation by the China Securities Regulatory Commission (CSRC) into intermediaries including Beijing-based Tian Yuan Law Firm, China Dragon Securities Co and CAREA Assets Appraisal Co.

The news was first reported by Chinese media.

Tighter scrutiny on IPOs comes as Beijing launches a flurry of regulatory crackdowns against sectors ranging from Internet to tutoring.

On Monday, China said it would tighten scrutiny over accounting firms in a fight against financial forgery, vowing “zero tolerance” toward misconduct.