China's securities regulator refuted a rumor that the country will continue to suspend initial public offering (IPO) approvals at a news briefing Thursday, the 21st Century Business Herald reported.
A staff member from the information center of the China Securities Regulatory Commission (CSRC) said "IPO approvals will not be stopped," according to the report, which was released 41 minutes after the stock markets closed Thursday.
The rumor about suspension of IPO approvals started to circulate after midday and boosted confidence in the stock market, with the benchmark Shanghai Composite Index closing at 2,056.32 points Thursday, up 2.6 percent from the day before, and the Shenzhen Component Index closing at 8,486.27, up 3.57 percent.
The CSRC has not held any IPO approval meetings since the end of July, but the securities regulator released a statement earlier this week saying that it would restart IPO approval procedures this Friday, which raised concerns that new IPOs might result in a transfer of capital from existing stocks and hurt investors' interests.
The Shanghai Composite Index fell below 2,000 points during daily trading Wednesday, the lowest in 43 months.
At the news briefing Thursday, the officials from the CSRC said the regulator will launch measures to improve benefits for investors and start investigations into listed companies that fail to share out dividends properly.
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