Stock market mulls future as IPOs slow

China's stock market is agog with talk about the sluggish IPO scene, which appears to have been exacerbated by, among other factors, the recent strengthening of regulations to improve market quality.

An old IPO case involving Guangdong-based Liangang Optoelectronic Technology Co Ltd at the ChiNext of the Shenzhen bourse in June 2023 has stoked fresh market concerns over IPOs.

The Shenzhen Stock Exchange had expressed concerns on Nov 17 over some details in Liangang's IPO application. The fact that 98 percent of the company's stake is held by promoters and company employees and only 2 percent is being sought to be offered to retail investors via the IPO caught the bourse's attention.