Authority says IPOs won't hurt existing stocks

The country's top securities regulator said that upcoming IPOs won't put pressure on the stock market.

The China Securities Regulatory Commission made the comment amid public fears that intensive IPO activities will siphon capital from existing shares and put further pressure on a stock market that has already stumbled under the psychologically important 2200 level.

Over 700 IPO candidates are waiting for regulatory approval from the CSRC to go public.

"Prior disclosure of a prospectus doesn't mean it will get approval, and getting approval doesn't mean shares will be issued soon or at all. If investors don't agree with an issuer's price, there won't be a successful IPO even if it gets regulatory approval," said the commission in a statement posted on its website.

The major Shanghai Composite Index dropped 1.74 percent, or 37.94 points, on Monday to 2147.95 points. It has lost 6.89 percent this month and 2.34 percent this year to date.