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Hardware & electrical equipment

China's US$9bn IPO plans hit by COVID-19 outbreak

China's IPO applicants are putting their plans on hold, at a time when many companies have to update their financial results

China's largest Coronavirus (COVID-19) outbreak in two years has hit US$9bn in fundraising as companies are forced to suspend domestic listings.

China's Star Market, a tech-focused exchange, has suspended 15 applications for initial public offerings (IPOs) because of the epidemic, Reuters reported.

Disrupted share sales are adding to an economy already suffering from developers' debt problems and Ukrainian contagion.

Three rounds of mass testing occurred in March in Shenzhen, and 67 IPO applicants targeting the start-up board ChiNext have pulled out this month, citing regulatory updates.

The Securities Times newspaper estimates the suspensions could delay fundraising worth US$9.4bn, one-tenth of China's roughly US$84bn domestic IPO fundraising in 2021.

Guangzhou Xaircraft Technology, CICT Mobile Communication Technology, Yuanjie Semiconductor Technology Plotech Technology, and Shenzhen Mould-Tip Injection Technology Co are among some companies putting their plans on hold.

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