China approves two new IPO applications

BEIJING - China's top securities regulator has approved new IPO applications from two companies, which will raise up to 900 million yuan ($130 million) in the A-share market.

Xinjiang Communications Construction Group Co Ltd will be listed on the small- and medium-sized enterprises board in Shenzhen, while Yusys Technologies Co Ltd will be listed on the ChiNext board, according to the China Securities Regulatory Commission (CSRC).

The companies 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 by the CSRC. China is gradually switching from an approval-based IPO system to one based on registration.