Anhui Maanshan Rural Commercial Bank Co. Ltd. withdrew its application for an IPO, becoming the third mainland China lender to do so since the start of the year.

Shenzhen Stock Exchange on July 2 terminated its review on the IPO of Anhui Maanshan Rural Commercial Bank after the bank withdrew its application, according to the website of the Chinese bourse.

The bank has become the third mainland lender, after Jiangsu Haian Rural Commercial Bank Co. Ltd. and Bozhou Yaodu Rural Commercial Bank Company Ltd., to voluntarily withdraw its IPO application this year so far, the 21th Century Business Herald reported July 3.

There are seven bank applications remaining in the IPO queue, the report said, with Bank of Huzhou Co.Ltd. being the only applicant that is earmarked "Enquired."

The "Enquired" stage is the second step of the IPO process after an exchange accepts an application. It comes before the listing committee approval, China Securities Regulatory Commission (CSRC) registration and commencing public trading.

"In the first half of 2024, IPO activities in the A-share market slowed amid [a] tightening regulatory environment," KPMG said in its 2024 midyear review of mainland Chinese and Hong Kong IPO markets, published June 18. Aggregate funds raised and number of IPO deals fell year over year by 75% and 70%, respectively, to 56.5 billion yuan and 52 deals, according to KPMG.

In March, the CSRC announced new rules that seek to improve the quality of new listings and enhance the responsibilities of sponsors and exchanges. Those followed another set of rules in August 2023 that slowed down the pace of new listings.

Currently, 42 A-share banks are listed on the Shanghai and Shenzhen stock exchanges, the two mainland China bourses, including six major banks, nine joint-stock banks, 17 city commercial banks and 10 rural commercial banks.

As of July 3, US$1 was equivalent to 7.27 Chinese yuan.