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China Bourses Halt IPO Applications in Regulatory Probe

The halt affects one or more of three companies being investigated by regulators – Zhong De Securities, ShineWing and King & Wood Mallesons

china stock exchange
The cut in fees is aimed at "promoting stable and healthy operation of the capital market, stimulating market vitality and enhancing support for the real economy." File photo: AFP.


Chinese stock exchanges have halted processing at least 60 initial public offering (IPO) applications as regulators investigate intermediaries in the deals, including Deutsche Bank‘s Chinese securities venture.

Exchange disclosures on Wednesday showed 12 IPO plans in Shanghai’s tech-heavy STAR Market and 48 in Shenzhen’s start-up market ChiNext were suspended.

Each had hired one or more of three companies being investigated by securities regulators – Zhong De Securities, accounting firm ShineWing and Sino-Australian law firm King & Wood Mallesons – the exchange filings said.

Zhong De is a joint venture between Shanxi Securities and Deutsche Bank.

All three companies served Leshi Internet Information and Technology, which the China Securities Regulatory Commission (CSRC) last March said conducted accounting fraud between 2007 and 2016.

King & Wood Mallesons and Zhong De said they had no immediate comment. ShineWing and Deutsche Bank could not immediately be reached for comment.

Shanxi Securities said in an exchange filing on January 18 that Zhong De would fully cooperate with the CSRC’s investigation into suspected law violations when it underwrote sales for Leshi in 2016.

It was not immediately clear if IPOs planned for the Beijing Stock Exchange were also affected.


  • Reuters with additional editing by George Russell



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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


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