IPO priority is not financial companies

TEN LOCAL BANKS as well as many securities dealers and futures brokers are reportedly in line for their initial public offering in China's A-share market, raising concerns about the shrinking market liquidity for bricks-and-mortar enterprises and innovation-driven companies. Beijing Youth Daily commented on Thursday:

Financial enterprises at all levels are striving for a place in the stock market this year, each with different intentions in mind. Most small local banks want to raise funds, while securities dealers want to further expand their business.

They have good reasons to do so as IPOs in the A-share market have become smoother during the past few months. China Securities Regulatory Commission, the top securities regulator, approved 52 IPO applications last month, marking the highest monthly total this year.