china pledges to speed up approval of stock listings
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

To attract capital and boost domestic growth

China pledges to speed up approval of stock listings

Arab Today, arab today

Arab Today, arab today China pledges to speed up approval of stock listings

China's top securities regulator decides which companies offer shares
Beijing - Arab Today

China's top securities regulator has pledged to speed up approvals of initial public offerings (IPOs), as the government seeks to attract capital and boost domestic growth.

Buoyed by the capital market's recovery from a 2015 rout, the China Securities Regulatory Commission (CSRC) on Sunday indicated it would loosen its grip on the nation's stock markets.

The CSRC decides which companies offer shares and when, as well as setting guidelines for the number of shares and their price -- all of which are determined by the market in other countries.

Regulators responded to the equities rout in the summer of 2015 by freezing new IPOs in an effort to stabilise stock prices, but CSRC chairman Liu Shiyu vowed to end this practice and introduce "new progress and breakthroughs".

More than 600 companies seeking to list in the market have struggled with long wait times, followed by seemingly arbitrary approvals.

Liu said faster approvals, particularly for companies in poverty-stricken counties, will attract new capital and boost investor confidence.

"Liu seems to be the first CSRC chief to publicly denounce the practice of shutting down the IPO market whenever there is a crisis," Dong Dengxin, a finance professor at Wuhan University of Science and Technology, told the official Xinhua news agency.

While the regulator signalled a willingness to allow the market to play a larger role in share sales, it has also cracked down on illegal activities by "barbarians".

Mainland Chinese stock exchanges have an unusually high proportion of non-professional investors and have been compared to "casinos", with insider trading and dramatic swings in share prices seemingly unconnected to underlying business prospects.

"There is only a half-step distance between being a financial mogul and a financial crocodile," Liu said.

Li Chao, the CSRC's deputy head, said closer supervision -- in the form of compliance risk management and standardised banking businesses -- will help prevent a repeat of the stock market turbulence of 2015.

Following a slump that saw the Shanghai stock index tumble nearly 40 percent in a little more than two months -- after peaking in mid-June that year -- several investment executives were investigated on suspicion of insider trading.

Last month, former star hedge-fund manager Xu Xiang was jailed for five and a half years.

His was the first insider trading case to be brought to Chinese court and involved more than 40 billion yuan ($5.8 billion), financial magazine Caixin reported.

The CSRC's planned reforms come as the government tries to staunch a flood of capital heading overseas as investors look for better returns, with interest rates expected to rise, putting pressure on the yuan and threatening the economy.

After Chinese firms went on a multi-billion-dollar foreign acquisition spree last year, the government responded by blasting what it called "irrational" spending and started rolling out new restrictions to curb the outflow of money.

The Shanghai Composite Index ended 0.76 percent lower Monday, in line with a sharp sell-off across Asian stock markets.

Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china pledges to speed up approval of stock listings china pledges to speed up approval of stock listings

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

china pledges to speed up approval of stock listings china pledges to speed up approval of stock listings

 



GMT 09:00 2018 Wednesday ,12 December

May tours Europe in desperate bid to save Brexit deal

GMT 13:29 2018 Friday ,14 December

Turkey targets military over alleged Gulen links

GMT 10:03 2018 Monday ,10 December

23 Palestinians arrested in West Bank

GMT 09:12 2018 Wednesday ,12 December

Ford trains 1,600 motorists in Mideast, Africa in 2018

GMT 09:47 2018 Monday ,10 December

Russian ex-policeman convicted over 56 murders

GMT 18:56 2017 Wednesday ,30 August

Premier: BDF model in patriotic work

GMT 12:45 2017 Saturday ,18 March

German steel workers to get 4% wage hike by 2018

GMT 19:03 2017 Monday ,25 September

Demi Lovato to help war-scarred children in Iraq

GMT 18:42 2017 Friday ,24 February

Each governor develops plan

GMT 15:29 2017 Saturday ,17 June

Spain threatens to block Greece bailout payment

GMT 15:19 2017 Saturday ,25 November

UN official lauds UAE's development support in Somalia

GMT 06:40 2017 Saturday ,30 December

Beaten Windies say one bad

GMT 11:15 2017 Friday ,29 December

Interior Minister receives Azerbaijani ambassador

GMT 09:01 2015 Sunday ,30 August

Building block of quantum computers from light

GMT 10:41 2016 Monday ,08 February

Truck maker Volvo offloads costs for big profit rise
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday