The path to an initial public offering (IPO) in China comes with an unexpected hurdle for some companies—a surprise regulatory "health check." On January 5, 2026, China's Securities Association unveiled its latest batch of companies selected for on-site inspections, with 11 firms making the list.
The Selection Process
The selection followed strict principles of transparency and fairness, witnessed by representatives from regulatory bodies, self-regulatory organizations, industry groups, and media outlets. This multi-stakeholder oversight ensures the randomness and impartiality of the selection process.
The Chosen Companies
The 11 selected companies represent diverse sectors, ranging from traditional manufacturing to cutting-edge technology:
- Luoyang Bearing Group Co., Ltd.
- Shanghai Frequency Precision Laser Technology Co., Ltd.
- Yuexin Semiconductor Technology Co., Ltd.
- Shenzhen Hanovo Medical Technology Co., Ltd.
- Guangdong Jiuan Intelligent Technology Co., Ltd.
- Suzhou Lieqi Intelligent Equipment Co., Ltd.
- Jiangsu Gaokai Precision Fluid Technology Co., Ltd.
- Shanghai Taosheng Electronics Technology Co., Ltd.
- China Salt Industry Co., Ltd.
- Ruishi Chuangxin (Chongqing) Technology Co., Ltd.
- Landspace Space Technology Co., Ltd.
What the Inspections Entail
These on-site examinations represent an ongoing regulatory process rather than a one-time evaluation. Regulators conduct thorough assessments through facility visits, document reviews, and interviews with key personnel to verify the accuracy and completeness of IPO application materials.
The inspections evaluate multiple aspects of company operations, including financial health, business performance, and internal controls. Companies found with deficiencies may face corrective requirements, and in severe cases, could see their IPO process suspended or terminated.
Significance for Stakeholders
For the selected companies, these inspections serve as both a rigorous test and an opportunity to enhance operational standardization. For investors, the results provide valuable insights when assessing potential investments.
Market observers note that monitoring these regulatory examinations offers important signals about market conditions and corporate governance standards, contributing to more informed investment decisions.