According to Reuters, China Auto Rental lifted its application to hold an initial public offering in the U.S. The move would have been the first time a Chinese company would list in New York since U.S. regulators tightened rules for foreign applicants.

The company originally planned to raise $158.1 million to expand its fleet and pay off debt, but reduced the sum to $138 million before cancelling it altogether.

Yao Junhong, executive vice president of China Auto Rental, said the company feared a weak IPO would hinder its future ability to raise funds since the environment for stocks in the U.S. for China is not well at the moment. Over the past two years, dozens of Chinese companies listed in the U.S. have been accused of fraud.

The full article from Reuters.com can be found at this URL:
http://www.reuters.com/article/2012/05/24/chinaautorental-idUSL4E8GO7ZL20120524