Sou Hu Cai Jing·2025-07-29 09:44Core Viewpoint - The China Securities Regulatory Commission (CSRC) has implemented stricter measures for the IPO process, leading to a significant increase in the number of companies withdrawing or terminating their IPO applications in 2024 compared to 2023 [1][2]. Summary by Sections Regulatory Changes - In March 2024, the CSRC issued guidelines to enhance the quality of listed companies by increasing random inspections and on-site checks for prospective IPO applicants [1]. - The new measures have resulted in companies with potential issues voluntarily withdrawing their applications due to fear of being flagged during inspections [1]. IPO Withdrawal and Termination Statistics - A total of 426 companies withdrew or terminated their IPO applications in 2024, an increase of 155 from 2023 [2]. - The first quarter of 2024 saw a peak in withdrawals and terminations, with 45 companies (19 withdrawals and 26 terminations) [4]. - The second quarter experienced a decrease, totaling 23 companies (8 withdrawals and 25 terminations) [4]. Notable Cases - Five companies, including Ansheng Technology and Qicheng Biology, had their IPO applications terminated shortly after being accepted in 2024, all listed on the Beijing Stock Exchange [4][5]. - Ansheng Technology's IPO process was halted due to compliance issues, with the review taking approximately five and a half months before termination [6]. Common Issues Leading to Withdrawal - Companies like Nanhang Logistics and Guangzhou Bank withdrew their applications without passing the first round of inquiries, often due to compliance and financial data issues [11][12]. - Guangzhou Bank's lengthy application process lasted seven years, ultimately failing due to financial discrepancies and regulatory tightening [11]. Broker Performance - Major brokers such as Minsheng Securities and CITIC Securities have seen multiple projects withdrawn, indicating a trend of concentrated withdrawals among their clients [12][16]. - Minsheng Securities had a withdrawal rate exceeding 60% in 2024, with significant penalties for failing to meet underwriting responsibilities [16].