China start-up IPOs freeze $115 billion: report

SHANGHAI, CHINA: The first set of ten initial public offerings on China's planned Nasdaq-style second board froze a combined 784.1 billion yuan ($115 billion) in funds for subscriptions, the Shanghai Securities News reported on Tuesday.

China is launching the Growth Enterprise Market in the southern boomtown of Shenzhen, hoping the move will create more investment channels and help nurture China's own version of Microsoft or Intel.

The official start date of the new board has yet to be announced but is expected as early as next month.

The 10 companies, including Lepu Medical (Beijing) Technology Co and Beijing Lanxun Technology Co, are among 13 that have so far received regulatory approval for second board listings.

Although the 10 companies aim to raise only a combined 2.82 billion yuan, analysts said their listings would have a psychological impact on the stock market, where investors are already worried about a flood of new equity supplies.

The benchmark Shanghai Composite Index .SSEC, China's key stock index, closed 2.65 percent lower on Monday as falling global markets and prospects for a continued heavy supply of new shares sparked a selling spree ahead of a long holiday.

A second set of nine initial public offerings on China's planned Nasdaq-style second board has a combined fund-raising target of 1.95 billion yuan ($286 million), official media said on Monday.

The nine firms, including Aier Ophthalmology, will begin roadshows this week with pricing and subscriptions scheduled shortly after an eight-day holiday that begins on Thursday.