Chinese Companies Halts their IPO plans

Amid the country’s biggest coronavirus outbreak, many Chinese companies have halted their plans to go public. This has affected $9 billion-plus in fundraising. Shanghai’s Exchange filing indicates that around 15 companies that applied for initial public offerings (IPOs) on Shanghai's tech-focused STAR Market have suspended applications because of the massive resurgence in cases of Covid infections. The biggest city in China, Shanghai is under Lockdown since Monday. The official newspaper Securities Times said the suspension potentially delays fundraising worth 60 billion yuan ($9.43 billion), The Shanghai Stock Exchange has vowed to maintain the steady operation of capital markets during the "special" virus control period in order to reduce the impact of this recent Lockdown. On Sunday, the Shanghai Stock Exchange informed that it continue to vet share sale plans by STAR Market candidates and strengthen online communications with issuers and underwriters. The recent outbreak has forced many global companies to shut their operations in China. Other than China, many other countries like Italy, Hong Kong are also witnessing an alarming surge in the number of Covid Cases.