China's Spring delays IPO plans

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Plans by Chinese low-cost carrier Spring Airlines to list on the Shanghai Stock Exchange in early 2013 are temporarily on hold.

This comes after the Chinese government stopped the approval of new listings temporarily, after a rush of approvals made earlier in 2012, say sources close to the airline.

A recent slump in the Shanghai Stock Exchange, which hit a four-year low earlier this week, has also dampened sentiment and led the company to believe that it would not be able to raise as much money from an initial public offering as it would like, add the sources.

Officials from Spring declined to comment. Sources say that executives from the privately-held and family-run company that owns Spring are still keen to go ahead with the IPO and hope that it can be held later in 2013.

Spring Airlines is a wholly-owned subsidiary of Spring International Travel Service.

The proceeds from the listing would help the airline pay for an existing Airbus A320 aircraft order as it expands its network in China. Spring is the only low-cost carrier in China and competes with state-owned carriers such as China Eastern and Air China.