CHINA on Friday issued new, detailed rules governing initial public offerings (IPOs), seen as a signal that new listings will hit markets soon after a two-month hiatus while regulators tweaked regulations.

    The new set of rules, published on the website of the Securities Association of China, are technical in nature, dealing with standards for underwriter and investor participation in IPO share auctions, but their publication was seen as clearing the way for the resumption of new listings which some investors fear could send China’s shaky share markets even lower.

    China Securities Journal reported in April, quoting an anonymous insider, that IPO resumption would resume after the new set of rules were in place.

    In a bid to shore up weak domestic markets, the China Securities Regulatory Commission (CSRC) put an unofficial freeze on IPOs in late 2012, only relaxing the suspension in early 2014 when it allowed a batch of previously approved companies to list in January and February.

    However, problems with the listings, including accusations of overpricing and insider manipulation, resulted in dozens of companies cancelling their IPOS while the CSRC investigated underwriters and inside investors for irregularities.

    At the same time, the CSRC effectively held off from processing applications from 600-plus companies still in the queue in order to revise regulations.

    The further delay led some market watchers to worry that the resumption of IPOS — which some analysts predicted could prove a bonanza for investment banks and underwriters given pent-up demand — could fail to meet expectations.

    However, the CSRC resumed publishing IPO applications on its website in late April, and so far nearly 300 companies have submitted preliminary prospectuses, hoping to raise more than 200 billion yuan (US$32.11 billion) combined, according to estimates based on fundraising targets in the prospectuses. (SD-Agencies)