China securities regulator denies policy to restrict Xiaomi supply chain-related IPOs

Asian Tech Press (Mar. 29) -- China's securities watchdog on Tuesday denied launching a policy to restrict IPOs of companies related to smartphone maker Xiaomi Corp (1810. HK)'s supply chain.

A recent market rumor said that Chinese regulators have made an inspection of IPO projects involving the Xiaomi supply chain, and has introduced a policy to restrict IPOs related to it.

The rumors also mentioned that this week, two major Chinese bourses, the Shenzhen Stock Exchange (SZSE) and the Shanghai Stock Exchange (SSE), did a check on listed companies and ccompanies under review for IPO applications, which are related to Xiaomi's supply chain, with the focus on whether there is a Xiaomi investment and whether there are behaviors such as pulling business and expanding sales after the investment.

Xiaomi denied the rumors on China's Twitter-like social platform Weibo on Tuesday.

Earlier Tuesday, the China Securities Regulatory Commission (CSRC) responded in a question-and-answer session that it had noticed rumors of significant changes in the IPO policy for the industry chain represented by Xiaomi.

The CSRC debunked the rumors, saying, "We made it clear that the Commission has not introduced restrictive IPO policies for Xiaomi industry chain-related enterprises, nor has it conducted any special investigation."

However, as of press time, the SZSE and SSE have made no response.

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