China's securities watchdog scares away IPO applicants

Only a day after China’s securities regulator announced it would closely vet the financial statements of listing hopefuls, companies started withdrawing their applications for new share sales.

The reaction has stirred speculation about how many companies that have already listed actually have “real, accurate and complete” documents, as required in the latest communication from officials.

Guizhou Zunyi Titanium, a titanium sponge producer, announced on Thursday that it would cancel its long-awaited initial public offering and has received confirmation from regulators on the withdrawal. Zunyi was the first company to scrap its IPO plans and more companies are expected to do the same.

China Securities...