IPO nod said by end of July

China is likely to resume approval for new share listings on the domestic exchanges as early as the end of July, the Securities Times said yesterday.

The China Securities Regulatory Commission told brokerages during a meeting yesterday that it is almost certain initial public offerings would resume at the end of next month, according to the report.

The CSRC said approval will first be given to IPO applicants that have met a series of requirements, such as providing valid financial documents, according to the report.

China has not approved any IPOs since November in a government crackdown on false disclosures and profit manipulation.

As of the end of May, 666 companies were lining up to launch IPOs on the Shanghai and Shenzhen bourses, down from nearly 900 IPO applications earlier this year.

The IPO reform requires issuers to collect quotations from at least 50 institutional and 50 individual investors during the pricing of IPOs involving over 400 million shares. At least 20 institutional and 20 individual investors' quotations are needed for IPOs of under 400 million shares.

Applicants need to provide measures to stabilize the share price in case it falls below net-asset value during the first five years after the debut.

The public can offer opinion on the draft IPO reform plan to the CSRC until Friday.