The regulatory requirements in the China market are becoming increasingly stringent. In addition to the recent market focus on the regulatory actions regarding Evergrande Group’s auditing issues, there are also reports that the Securities Association is strengthening regulations on securities firms to prevent registered IPO projects from being withdrawn due to illegality or inadequate supervision.

Market statistics show that there have been over 300 IPO withdrawals in the mainland this year, with the withdrawal rate close to half. Based on CBI’s experience, sponsors and security firms must pay attention to all details and conduct sufficient due diligence when handling IPO projects. Regulators may also pursue responsibilities and inquire whether preparation works are in place. It is essential to raise our due diligence standards and avoid situations of "withdrawal after rush-in-submission”.