China vows to continue scrutinizing eligibility of IPO applicants

China will continue to conduct strict scrutiny to ensure the quality of companies which apply for initial public offering(IPO), the country's securities regulator said on Friday.

The China Securities Regulatory Commission (CSRC) said in an online statement it will strictly monitor each procedure of the IPO process and crack down on illicit acts such as false disclosure of information, undergoing public offerings for the purpose of profit manipulation.

From January to May 19 this year, the CSRC approved 188 companies, while rejecting IPO applications from 24 firms.

The CSRC had turned down 18 applications between the beginning of the year and April.

Unusual financial conditions, inability to generate sustainable profits and questionable authenticity of accounting documents were among the reasons for the rejections.

The tightened control over the application process could effectively prevent the inception of any trend involving problematic applications, the statement said.

Under the current IPO system, new shares are subject to approval from the CSRC.

The commission said it will continue to strengthen IPO regulation and keep a close eye on the practices of faking documents and distorting companies' performance.

(CGTN)