China approves 2 IPO applications

The China Securities Regulatory Commission (CSRC) approved the IPO applications from two companies Friday.

They are allowed to raise up to 1.5 billion yuan (238 million U.S. dollars), the CSRC said in a statement.

Sangfor Technologies, an information security and cloud computing service provider, will be listed on the NASDAQ-style board of ChiNext, while Fuda Alloy Materials will be listed on the Shanghai Stock Exchange.

The firms and their underwriters will confirm IPO dates and publish prospectuses following discussions with the exchanges.

Under the current IPO system, new shares are subject to approval from the CSRC. China is gradually switching from an approval-based IPO system to a more market-oriented one based on registration.