June 27 (NBD) -- Zhejiang Shibao Company Limited (002703.SZ) ceased to proceed with the non-public issuance of A-shares due to changes of the capital market and financing environment, the Chinese OEM supplier of automotive steering system announced Sunday.

On January 4 this year, Zhejiang Shibao collected the “Approval in Relation to the Non-public Issuance of Shares by Zhejiang Shibao Company Limited" (the "Approval") dated December 25 of 2017 from the China Securities Regulatory Commission. However, the company failed to complete the private placement within the six-month validity period and the Approval lapsed on June 25, 2018.

The Zhejiang Shibao case is just an epitome of enterprises canceling their private placement plans.

A total of 78 listed companies have terminated non-public issuance year to date, and 14 of them made the announcement of canceling issuance in June, according to statistics from a financial data portal. Besides, out of the companies which had successfully completed the non-public issuance since this year, up to 130 saw their stock trading prices drop away from the issue prices.

A source at a Shenzhen-based private equity firm explained to 21st Century Business Herald that the miscarried cases of non-public issuance were caused by changes in market environment, issuance policies and new regulations concerning unloading shares.

Email: gaohan@nbd.com.cn