Chinese companies abandon IPOs

According to the latest data from China's Securities Regulatory Commission, 76 applicants quit their IPO plans between March 25th and 29th.

... Compared with just 48 that withdrew applications in the three months since January.

In January, the commission announced that sponsor institutions of all pending IPO applicants should investigate the financial status of applicants and file reports to the commission before March 31st.

After the reports were filed, the commission would then conduct selective checks on the firms.

Analysts say the withdrawals may be due to their poor performances last year.

And the commission has issued few IPO approvals since June... As well as suspended IPO approvals since late October.

... Moves many believe aim to stabilize China's volatile stock market.

According to the commission's figures, nearly 900 companies were awaiting IPO approval as of February.

Analysts say the number of pending IPO applicants will fall in the short-term... as some applicants that failed to submit reports, will be forced to terminate their applications...

And that more companies will pull out, during the upcoming official checks...

Which could spook investor confidence, in the world's second-largest economy.