Chinese stock exchanges have suspended more than 40 planned initial public offerings (IPOs) in Shanghai and Shenzhen amid a regulatory probe into the share offerings.
The Shenzhen Stock Exchange suspended more than 30 IPOs, including public share sale plans by BYD Co.'s microchip unit, according to exchange filings. The Shanghai Stock Exchange has pressed the pause button on 10 IPOs targeting the city's technology-focused STAR Market.
The companies attribute the IPO suspensions to an investigation by the China Securities Regulatory Commission (CSRC) into intermediaries including Beijing-based Tian Yuan Law Firm, China Dragon Securities and CAREA Assets Appraisal.
Tighter scrutiny of IPOs comes as Beijing launches a flurry of regulatory crackdowns against sectors ranging from the Internet to the tutoring of children.
On Monday (August 23), China’s government in Beijing said it would tighten scrutiny over accounting firms in a fight against financial forgery and fraud, vowing enhanced auditing and “zero tolerance” towards any misconduct that is uncovered.
