China to speed up IPO approvals: sources

Beijing

CHINA'S securities regulator is pushing to speed up and simplify the review process for initial public offerings, people with knowledge of the matter said, as the government tries to improve companies' access to funding.

China Securities Regulatory Commission officials pledged at a work conference this week to relax requirements for IPO issuance and make it clear to issuers that it doesn't impose a fixed threshold for annual profit, said the people, who asked not to be named because the comments weren't public. The regulator aims to have at least four IPO applications approved each week, they said.

Officials also said the regulator would seek to dispel concerns among issuers that it will closely supervise how money raised in an IPO is used, the people added. Companies should decide themselves how they want to use their cash, the CSRC representatives said at the conference. BLOOMBERG