Lujiazui, a financial zone in Shanghai Photo: VCG

Multiple Chinese pharmaceutical companies have recently withdrawn their applications for a listing on the A-share market amid the nation's strengthened efforts to tackle corruption in the medical sector, according to media reports. 

Shanghai-based Rongsheng Biotech recently withdrew its application for an initial public offering (IPO) on the Shanghai STAR Market without giving the reasons, according to domestic financial news portal 21jingji.com. The report noted that the company's high sales expenses and questions about its performance sustainability have triggered repeated inquiries from regulators and market participants.  
 
Shanghai on Monday launched a campaign to correct misconduct in pharmaceutical sales and healthcare services, with thirteen departments including the Shanghai Municipal Health Commission jointly issuing a notice requiring anti-corruption inspections at medical institutions. 

As of Wednesday, some 12 pharmaceutical firms have stopped their IPO applications, with two firms withdrawing from the Shanghai main board, four from the STAR Market and six from the Growth Enterprise Market, the 21jingji.com report noted. Questions related to sales expenses were the major focus during the review process for the firms.   

Responsible Chinese authorities have been stepping up efforts in tackling corruption issues in the medical sector. 

On July 28, the Central Commission for Discipline Inspection, the country's top graft buster, held a meeting to urge relevant supervision departments to work together with other Chinese authorities in combating corruption in the medical field nationwide. 

Earlier on July 21, the National Health Commission held a video conference with nine responsible authorities about corresponding tasks for a year-long rectification campaign targeting the nation's corruption issues in the pharmaceutical sector. 

At least 155 hospital chiefs across the country are being probed for allegedly violating laws and regulations, double the number in 2022, according to a recent report from the Securities Times, citing industry information provider Saibailan.