Longer IPO wait as CSRC seeks an answer
The ban on mainland share offerings could last until Lunar New Year as the securities watchdog tries to underpin the weak market
The mainland's controversial initial public offering (IPO) system will probably go through another round of refurbishment more than three years after its last overhaul.
This means there will be a reasonable spell of limbo as the regulator hones its tactics to deal with a flood of listing applicants and a slump in the market.
The China Securities Regulatory Commission (CSRC) has suspended IPO approvals for two months and is set to extend the ban on new share offerings until at least February as it faces an uphill battle to underpin the weak market.
The months-long ban follows a nine-month hiatus between September 2008 and June 2009 when the regulator halted IPO approvals to stem a market slide.
It made no official comment on the latest move last week, but an official, speaking on condition of anonymity, said the suspension could last for a while due to the weak market.
"Indeed, the regulator has no clear-cut plans on how long the IPO ban would last," the official said. "The key point now is how to adjust the policies to solve the problem."