The China Securities Regulatory Commission published an update on its 2025 on-site inspections of initial public offering applicants, describing them as a key gatekeeping tool in IPO supervision. It completed inspection handling for 20 companies, including 16 selected at random and four chosen on a problem-oriented basis, covering eight Main Board applicants, nine STAR Market applicants and three ChiNext applicants. For newly accepted applicants, the commission said it continued to inspect 20% of filings selected at random to verify application quality, while pending applicants can face targeted inspections where there are significant unresolved doubts linked to listing conditions. The update said filing quality improved in 2025, with none of the 16 randomly selected applicants withdrawing their applications and seven having passed exchange listing committee review by the end of 2025. The main findings centered on disclosure quality. Two companies were found to have suspected major information disclosure violations, including allegedly inflating revenue through fabricated business lacking commercial substance or recognizing revenue before acceptance conditions were met. The commission has opened investigations into those leads and said issuers and intermediaries will face strict accountability if the breaches are confirmed. Six companies had disclosure quality defects, with two receiving public criticism because the defects affected judgments on listing conditions and four receiving warnings because the defects affected general review assessments. A further 12 companies had disclosure irregularities, such as errors in consolidation scope, asset capitalization timing, depreciation estimates and labor dispatch disclosure, but these were judged not to affect the review outcome and were addressed through rectification rather than regulatory sanctions. Next, the commission said it will further calibrate inspection coverage and effectiveness, maintain a risk-based and differentiated approach, and continue focusing enforcement on serious conduct such as disclosure fraud and financial falsification.
China Securities Regulatory Commission2026-02-06
China Securities Regulatory Commission reports 2025 IPO inspections, flags 2 suspected major disclosure violations among 20 applicants
The China Securities Regulatory Commission said it completed 20 IPO applicant on-site inspections in 2025, including 16 random checks and four targeted inspections, and reported improved filing quality with no withdrawals among randomly selected applicants. It identified two companies suspected of major disclosure violations and opened investigations, while six others faced criticism or warnings for disclosure defects. Twelve additional applicants were required to rectify less material disclosure irregularities without formal regulatory measures.