CHINA’S securities regulator has pledged to review Guosen Securities Co.’s application to sell shares, signaling that it’s poised to resume approvals for initial public offerings (IPOs) by brokerages after a three-year halt.

    The China Securities Regulatory Commission’s review will be on Nov. 14. Guosen Securities, which is based in Shenzhen, plans to sell as many as 1.2 billion shares, according to a draft prospectus from June.

    Shares of brokerages jumped Friday with Citic Securities Co. gaining 3.41 percent in Shanghai amid prospects for extra capital for a fragmented industry. The companies need money to fund fast-growing quasi-lending businesses such as securities lending and margin finance.

    The prospect of Guosen Securities getting the green light “adds to other positive developments for China’s brokerages,” said Zhang Yanbing, a Shanghai-based analyst at Zheshang Securities Co. “Industry earnings have improved this year and the Shanghai-Hong Kong stock link program is gaining momentum. We are bullish on brokerages.”

    The China Securities Regulatory Commission halted all IPOs for at least a year through November 2013 to try to strengthen the quality of listed businesses and prevent investors from colluding to manipulate prices.

    Guosen Securities is among eight brokerages awaiting approval for first-time share sales. (SD-Agencies)