China regulator rejects Great Wall Motor IPO plan

China's securities regulator said on Monday it had rejected an application by Great Wall Motor Co to conduct an initial public offer of local-currency A shares in Shanghai.

In a brief statement, the China Securities Regulatory Commission did not give a reason for its decision, or say whether Great Wall might reapply.

The company, which is China's largest maker of sport utility vehicles (SUVs) and is already listed in Hong Kong, had planned to issue up to 121.7 million new A shares, or 10 percent of its expanded capital, to fund an expansion of production and upgrade technology.

At Great Wall's last Hong Kong share price of HK$5.70, the IPO could have raised as much as US$89 million.

Several much larger IPOs have been approved by the securities regulator over the past six weeks, but have been unable to proceed because of the weakness of the stock market.