Translated by Andrew Vanburen from a Chinese-language piece in Qilu Evening Post
FOLLOWING TWO MONTHS of inactivity, two bold firms are ready to list on Mainland China's bearish bourses.
Perhaps it was the just concluded nine-day market closing marking a combinded double-holiday that stirred the pot and roused the rambunctious.
The result is that China’s stock market – whose benchmark Shanghai Composite was the world’s worst performing index in the first nine months – is finally back in the initial public offer game.
On Wednesday, October 10, China’s IPO oversight body will oversee the approval of two A-share aspirants – Chongqing Gas Co and Shenzhen Suntak Tech – the first such meeting in two months.
Both domestic listing candidates are fully expected to meet with success in their campaigns.
The last time the listing watchdog got together to vet candidates was on July 31.
That was the day that frequent A-share listing applicant Shenzhen Shenzhou Computer finally was given the green light to sell shares in the domestic capital market – becoming the last enterprise approved before the two-month freeze.
It’s perhaps no coincidence that the Shanghai Composite Index has seen steady and continuous declines for much of 2012, with the past two months being no exception.
Therefore, the appearance of two potential newcomers to the A-share market is as much a function of their own enterprising spirit and even bravery, but also a result of the approval body not being in a position to be overly choosy in such a decidedly bearish climate.
IPO proceeds raised in the January-September period are down 56% year-on-year to 102.5 billion yuan.
New A-share listcos in the first three quarters in China only hit 149, over 34% down from a year earlier.
Market regulators are more than eager to hear more than a few furtive knocks on the IPO door.
See also:
HOLIDAY SPIRIT: Should China Cheer End Of Break?
MARKET HOLIDAY? China Stock Trends Following Week Off
DRAWN & QUARTERED: Miserable Q3 For China Funds
PARTY OVER? Dual-Listcos Much Better Off In Hong Kong