A Chinese company has suspended an initial public offering (IPO) because its name was seen as an allusion to Japan’s invasion of China in the 1930s, securities industry sources said on Tuesday.
Hangzhou Futong Showa Optical Communications Co Ltd had postponed a yuan-denominated A-share IPO days after announcing plans for the offering, state newspapers reported. The optical fibre maker, partly Japanese owned, had said it was unprepared for the transaction, they reported. Company executives declined to comment further .
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But several industry sources said the company’s name had sparked outrage. ‘Showa’ was the reign of wartime emperor Hirohito, who oversaw Japan’s military expansion in Asia and its 1945 defeat in World War II. ‘‘Some market sources expressed strong indignation upon seeing the company’s IPO prospectus,’’ said a broker at a major Chinese securities house. ‘‘They protested to regulators, who decided to suspend the company’s IPO late last night.’’
