Threat of China's IPO overhang exaggerated

Most of the listing hopefuls are smaller companies with modest fundraising plans.

China’s bulging pipeline of initial public offerings is the single biggest bottleneck in the domestic equity market. It is certainly a critical issue for the nation’s securities regulator, which has made it a priority to deal with the overhang.

However, some specialists say the potential threats have been exaggerated. “Most of these companies are small and the amount they plan to raise is not a lot,” according to Hu Zhanghong, chief executive of CCB International....

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