China is strengthening its supervision on initial public offerings, following a wave of IPO issuance last week. The securities regulator will conduct more strict monitoring on pricing, roadshow and risk control.

The China Securities Regulatory Commission said on its website it will make random inspections on the procedures of book-building and roadshows. The CSRC said if an issuer and lead underwriters are found to have used information other than what is disclosed publicly in the prospectus, it would stop the IPO and mete out punishment according to relevant rules.

The rules also said if the price earning ratio of proposed offering price exceeds the average PE ratio of its listed peer companies in the secondary market, the issuers and major underwriters must publish timely investment risk reports, at least once a week, during the three weeks before online subscription.

The CSRC also said it will carry out spot checks on the offering procedure of offline investors. The disqualified ones will be recorded and published on blacklists.

The securities regulator has promised a more hands-off approach to IPOs after resuming them earlier this month following a 15-month freeze, saying it will step up regulations on deals and share pricing.

This week, China will see a total of 28 firms issuing new shares. Due to the flood of IPOs, the A-share market has dipped by more than 3 percent last week, but the Nasdaq-style Chinext board has gained 0.03 percent, rising for three weeks in a row.