As of the end of May 2018, the number of IPO applications awaiting approval by the securities regulator had fallen from 895 in June 2016 to only 279. The gradual draining of the "IPO quake lake" stems from the strengthening of approval oversight, which has resulted in 150 applications being rejected by the regulator in the past three years.
“In the past, many companies thought that they had it made, just by being listed. But recent reviews by the CSRC show that the regulator is strictly monitoring the operations of listed companies and that those which violate regulations will pay the price for it,” said Yang Zhongning, an investment consultant of Industrial Securities.
“So many listed companies are no longer under the impression that a successful IPO application is the end of things. That's why many companies, especially those with poor fiscal performance, have given up on going public,” Yang added.
