An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China July 6, 2018.
REUTERS/Aly SongSHANGHAI, Aug 11 (Reuters) - A growing number of healthcare companies in China are shelving their initial public offering (IPO) plans as its stock exchanges have stepped up scrutiny of the pharmaceutical industry's business practices amid an escalating anti-corruption drive.
Vaccine maker Shanghai Rongsheng Biotech Co terminated its IPO plan this week, after the company's high proportion of sales expenses drew attention from regulators.
The company's sales expenses over the past three years amounted to nearly half of its revenue.
Another banker said drugmakers are stepping on the brakes of their IPO plans due to the rising uncertainty.
Persons:
Aly Song SHANGHAI, Rongsheng, drugmakers, Fujian Mindong, Jason Xue, Tom Westbrook, Muralikumar
Organizations:
REUTERS, Pharmaceuticals, Shanghai Rongsheng Biotech Co, Shanghai Stock Exchange, Rejuenation Pharmaceutical Co, Shenzhen Stock Exchange, HIT, National Health Commission, Thomson
Locations:
Shanghai, China, Fujian, Rongsheng, Shenzhen, Singapore