Citic Securities Co President Boming Cheng told Bloomberg that China could resume initial public offerings on its domestic stock market. The lifting of the freeze on new listings could occur after the meeting of the Chinese Communist Party would meet on November 9 to November 12. The meeting, to be attended by President Xi Jinping and other party leaders, would tackle economic reforms, Cheng added. Citic Securities is China's biggest brokerage in terms of market value.
Cheng said in the interview, "We still have reasons to believe that the IPOs may resume before the end of this year, as the policy meeting ends Nov. 12."
Bloomberg reported that the volatility of the stock market was one reason why China suspended IPOS in October last year. The concern of investors on the financial reporting of newly-listed firms was also another reason for the suspension.
The China Securities Regulatory Commission had already received IPO applications from 83 companies. Based on their June estimates, Ernst & Young said the firms could raise a combined total of CNY 55.8 billion or USD 9.15 billion.
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