Mainland retail investors are dreading another round of liquidity drain in the stock market from several mega initial public offerings by major state-owned enterprises.
Some 10 are in the pipeline, as Beijing fast-tracks approvals for SOE listings that are likely to soak up 100 billion yuan (HK$122.4 billion).
The move is in stark contrast to China Securities Regulatory Commission (CSRC) chairman Guo Shuqing's attempts to curb fresh equity listings to prevent the market from sinking any further.
To date, Shaanxi Coal Industry, Citic Heavy Industries and China Postal Express and Logistics have received approval to launch IPOs on the Shanghai Stock Exchange. They are expected to net a combined 31.4 billion yuan.
The CSRC is set to vet applications from another clutch of industrial juggernauts, including China National Nuclear Power, the mainland's largest developer of atomic energy, and People's Insurance Company of China (PICC), one of the country's largest insurers, as the government is determined to support state-controlled firms hungry for capital.
The IPO bonanza has come as a major source of disappointment for investors, who have been under the impression that the CSRC would ration IPO volumes to shore up market confidence.
