(Bloomberg) — China’s market regulator halted 42 initial public offerings in Shanghai and Shenzhen after starting a probe into an investment bank, a law firm and other parties involved in the deals.
The news of the shelved IPOs was reported by Shanghai Securities News, which cited disclosures by the exchanges and company filings.
China Securities Regulatory Commission started a probe of China Dragon Securities Co., Beijing-based law firm Tian Yuan, Carea Assets Appraisal Co. and Zhongxingcai Guanghua Certified Public Accountants LLP, according to Shanghai Securities News.
The halts come amid a broader crackdown on the private sector in China, which has roiled capital markets. Regulators have also tightened controls over IPOs this year as firms flocked to raise capital amid a fast economic recovery and an earlier streamlining of regulations.
After a mid-year work meeting, the market regulator said on Friday that it will “strictly control the entrance to the capital market” and that it has “zero tolerance” for market misconduct.
Among those halted was the share sale of BYD Co.’s chip unit, according to an Aug. 18 update on the Shenzhen bourse’s website.
The firms involved in the probe and the CRSC didn’t immediately respond to requests for a comment.
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