In 2018, only 53.46% of IPO applications were approved by the China Securities Regulatory Commission, a drop of nearly 30% when compared to the rate of 79.3% in 2017, Yicai.com reported.

Only 85 out of 159 companies were given the green light for an IPO so far this year. Moreover, the number of companies filing IPO applications has also seen a significant decrease from 2017.

As of September 13, there are 258 companies currently lining up for the assessment of their IPO applications. Meanwhile, 162 companies have withdrawn their applications, exceeding the total number in 2017, which saw 146 withdrawals.

Insiders think the tightening up of IPO assessments this year has “scared” many companies off. In particular, the new policy stipulates that once the IPO is rejected, the company cannot seek a backdoor listing within three years.

It also depends on which sector those companies belong to. The securities regulator tend to prefer industrial enterprises. Thus, companies in other industries lack confidence and often withdraw.