Applications by three companies for initial public offerings in Shanghai and Shenzhen have been rejected by the regulator since the beginning of May, according the China Securities Regulatory Commission.

This brings the total number of rejected applications in the Chinese mainland to five so far this year.

And more rejections are likely, as a report in the 21st Century Business Herald said that the regulator may consider removing more companies from the IPO application list due to their shrinking profit margins.