Chinese companies struggle with accounting treatment and documentation requirements when transitioning construction-in-progress assets to fixed assets during IPO processes

Companies attempting to list on Chinese stock exchanges (from main board to Beijing Stock Exchange) face complex and inconsistent regulatory scrutiny over the accounting basis and supporting documentation for converting construction-in-progress (在建工程转固) to fixed assets. This creates repeated compliance challenges, material rejections, and delays in IPO timelines as regulators demand clarification across multiple submission rounds.