ZC Rubber IPO stalled on China stock market woes

London - A downturn in Chinese stock markets over recent months has prompted a delay to Zhongce Rubber Group's (ZC Rubber) planned initial public offering (IPO), which was expected to launch in 2023.

"The IPO process is being delayed due to the unsatisfactory stock market in China," a spokesman for China's largest tire manufacturer explained in a 30 Nov reply to ERJ's enquiry.

The move tallies with reports of foreign investors steadily reducing their positions in China-based stocks since August, due to continuing uncertainty over the country's economic recovery.

ZC Rubber’s application for an offering of A shares was accepted in late 2022 by the China Securities Regulatory Commission (CSRC), paving the way for the IPO to happen this year. (ERJ report)

Despite the current delay to its public stock-exchange listing, ZC Rubber is continuing to develop its position overseas. (ERJ report)

Latest developments include a new sponsorship deal with English Premium League club Arsenal, making the tire maker an official partner for 2024-26.

"This will be great... for ZC Rubber and we expect more business expansion with the sponsorship programme," said the company spokesman.

ZC Rubber's representative also signalled a significant development in the field of automated & intelligent tire manufacture - with an announcement scheduled in the coming weeks.