Shanghai Bourse Probes Zhejiang King After Listing Is Halted

The Shanghai Stock Exchange has announced that it will probe Zhejiang King Co Ltd after the Chinese manufacturer of air conditioners halted its initial public offering (IPO) amid media reports about alleged issues such as the overpricing of shares, Roxanne Liu and Ryan Woo reported for Reuters.

Zhejiang King stated on Saturday that it would suspend the new share subscription procedure initially scheduled for Monday due to the media reports. I Photo: Zhejiang King Co., Ltd.

This probe comes as China's securities regulators have tightened their scrutiny of IPOs and slowed the pace of share sales as part of efforts to revitalize a flagging stock market.

Zhejiang King stated on Saturday that it would suspend the new share subscription procedure initially scheduled for Monday due to the media reports, without specifying the nature of those reports.

In a statement issued late on Saturday in response to media inquiries about Zhejiang King's IPO, which include allegations of overpricing of shares and that the company attempted to list the same assets twice, the Shanghai Stock Exchange said it is aware of the media allegations and that it will launch a targeted investigation into the firm.

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