Guidelines keep PE ratios in check

As of Wednesday, all of the mainland-listed companies that have gone public since April, when the China Securities Regulator Commission (CSRC) issued new guidelines to regulate the country's IPO system, have kept the price-to-earnings (PE) ratios of their shares within 125 percent of the industrial average, according to figures from iFind, a financial data provider.

According to the terms of the CSRC's guidelines, if the PE ratio of a domestic company in the mainland IPO pipeline is above 25 percent of the average for its respective industry, it would be required to reset its issuing price.