IPO review will be canceled
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China's securities regulatory will today cancel an initial public offering review scheduled for Shanxi Securities Co.
"Shanxi Securities is involved in a matter that requires further inspection, so the review will be canceled," the China Securities Regulatory Commission said in a statement on its website.
The commission didn't clarify what issue affected the review, but a media report said ahead of the statement on Wednesday that one of the brokerage's underwriters is its subsidiary, Zhong De Securities.
But no rules forbid a subsidiary from helping its parent launch an IPO as an underwriter, thus it remains unclear whether the cancellation is related to this issue.
Shanxi Securities plans to issue up to 600 million shares, or 23 percent of its enlarged capital, on the Chinese mainland to replenish its working capital and for expansion.
The brokerage, which provides asset management, investment banking and other services, had total assets of 14.89 billion yuan (US$2.2 billion) by the end of last year.
Shanxi Securities posted profit of 624 million yuan last year, compared with 277 million yuan in 2008.
