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China Pushes IPO Reform To Liberalise Stock Markets

CHINA PRESS
MNI (Singapore)

China issued a draft rule to ease regulations for initial public offerings in a bid to liberalise the stock market to broaden access to capital, the China Securities Regulatory Commission (CSRC) said in a statement late Wednesday. A registration-based IPO system would mean an end to vetting of planned share sales by regulators, while it would expedite the listing process and allow more freedom in setting prices. Trading rules on the boards will also be modified, with no daily limits for the first five trading days but with a cap of 10% on both sides starting on the sixth day. The new system will be implemented at all stock exchanges in Shanghai, Beijing and Shenzhen. The CSRC is soliciting public opinions until February 16.

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