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reporter zhang mingshuang, editor zhang haini, china business network

on august 23, suzhou hong'an machinery co., ltd. (hereinafter referred to as hong'an machinery) announced the termination of its gem ipo. since passing the meeting on march 23, 2023, hong'an machinery has waited for 1 year and 5 months, but failed to wait for a registration approval document, and finally voluntarily withdrew its initial public offering application.

image source: screenshot of shenzhen stock exchange official website

hongan machinery is not an isolated case. according to statistics from the daily economic news, as of september 4, 43 companies on the shanghai and shenzhen stock exchanges in 2024 have terminated their ipos after passing the review, more than double the 19 in 2023. among them, 38 companies terminated their ipos without submitting their registration applications after passing the review, and 5 companies terminated their registration procedures after passing the review and submitting their registration applications.

among these companies that failed to successfully register after passing the meeting, declining performance or business growth is a question that the exchange has repeatedly inquired about. some companies are also affected by the spin-off listing policy, and their independence has attracted much attention.

on september 4, pan helin, a well-known economist and member of the information and communications economics expert committee of the ministry of industry and information technology, said in an interview with a reporter from the "daily economic news" that if the market continues to remain in its current state, a reduction in ipos is an inevitable result.

some companies received regulatory letters due to declining performance after the meeting

after multiple rounds of inquiries and deliberations, the companies that have passed the review are only one step away from a successful listing, but for some companies, this step is "out of reach". on august 27, 2023, the china securities regulatory commission proposed to "tighten the pace of ipos in stages", and since then the number of ipo withdrawals has increased significantly, including some companies that have passed the review.