Core Insights - The IPO approval rate in the A-share market has improved significantly this year, with a current approval rate of 95.08%, up nearly 10 percentage points from 85.37% in the same period last year [1] Summary by Categories IPO Performance - A total of 61 companies have been reviewed for IPOs this year, with 58 successfully approved, indicating a strong performance in the IPO process [1] Regulatory Environment - The regulatory approach has become stricter, with 16 companies selected for on-site inspections to ensure compliance and prevent any companies from "sneaking through" the approval process [1] Market Development - The capital market is undergoing deep reforms focused on supporting new productive forces, aiming to facilitate the entry of high-quality companies into the market through both domestic and international channels [1]

Core Viewpoint - The recent trend of IPO withdrawals has raised concerns, with 72 companies terminating their IPO applications this year, primarily due to material withdrawal, with over 40% of these companies originally planning to list on the Shenzhen Stock Exchange [1][5]. Group 1: IPO Withdrawals - Two notable companies, Zhongchuan Shuangrui (Luoyang) Special Equipment Co., Ltd. and Guangdong Shunde Rural Commercial Bank Co., Ltd., have recently withdrawn their IPO applications after long waiting periods, with the former having been approved for 8 months and the latter waiting for 6 years [1][2]. - As of July 9, 2023, a total of 72 companies have terminated their IPO applications this year, with the Shenzhen Stock Exchange seeing the highest number at 29, followed by the Shanghai Stock Exchange with 16 and the Beijing Stock Exchange with 27 [5][6]. - Among the withdrawn applications, four companies had been waiting for over 5 years, including Shunde Rural Commercial Bank, Zhejiang Destai New Materials Co., Ltd., Guangzhou Bank, and China Tea Co., Ltd. [6]. Group 2: Reasons for Withdrawal - The reasons for these withdrawals include policy changes, shifts in industry profitability, and changes in company operations, with some companies potentially facing reports of misconduct [1][11]. - Zhongchuan Shuangrui's IPO was halted due to a lack of registration submission after passing the review, with concerns raised about its related party transactions and independence during the review process [3]. - Shunde Rural Commercial Bank faced extensive feedback from the regulatory body, including 62 issues related to information disclosure and asset quality, leading to its eventual withdrawal after years of waiting [4]. Group 3: Impact of On-Site Inspections - Several companies that withdrew their IPO applications had been subject to on-site inspections, with all five companies from the first batch of inspections in 2023 ultimately withdrawing their applications [12]. - Companies that faced on-site inspections and subsequently withdrew their applications have also faced penalties for various violations, including undisclosed internal control deficiencies [13].