One of the more controversial IPOs in China has been shelved for the time being after the industrial bear bile farming company Guizhentang ended its application for a stock market launch.

Guizhentang has tried for three years to go public, a move that was consistently criticised by animal welfare activists and the Chinese public alike.

Guizhentang announced in early February 2011 that it would raise funds through a public listing, increasing its number of bears from 400 to 1,200.

However, the Chinese Securities Regulatory Commission has announced that its application review had been terminated.

At special farms throughout China, about 10,000 bears – mainly moon bears, but also sun bears and brown bears – live out their lives in tiny pens called “crush cages”, barely big enough to hold them.

'Encouraging victory'
The bear's gall bladder is "milked" painfully every day for bile through specially installed catheters. The bile is used in 123 different kinds of Chinese medicines, especially for liver disorders.

"This encouraging victory belongs to all those who have been saying no to cruelty. They have listened to their own conscience and have responded by continuing to campaign and working towards an end to bear bile farming," said Toby Zhang, a spokesperson for the Animals Asia group.

“We know there is no humane method to extract bile from bears, we also know the bear bile produced potentially threatens the health of its consumers,” said Mr Zhang.

“Bear bile products are promoted by producers who often overstate their worth while ignoring the welfare of consumers.”