China approves new IPOs

China's securities regulator allowed applications for the initial public offerings (IPOs) of 20 companies on Monday.

Ten firms will be listed on the mainboard of Shanghai Stock Exchange, three on the Small and Medium-sized Enterprises Board in Shenzhen and seven on the ChiNext board, according to the China Securities Regulatory Commission (CSRC).

The move, rare in terms of the number of companies, has prompted fear that the CSRC has acted too hastily. However, the securities regulator announced in June that it would let around 100 companies go public by the end of 2014, and the figure has not be reached.

Xiao Gang, chairman of the CSRC, said the commission will reform IPO approval and ensure new shares enter the market in a proper manner.

Shares closed at the highest level in five and a half years on Monday, the first trading day of 2015, as the benchmark Shanghai Composite Index closed at 3,350,52 points, up 3.58 percent.