MNI BRIEF: China Limits, Tightens IPO To Boost Listing Quality

The China Securities Regulatory Commission will limit IPOs and boost listing standards, in a bid to improve the quality of listed companies, Li Chao, vice chairman of CSRC told a press conference Friday.

The regulator will “implement necessary adjustments for the issuance of new shares considering the affordability of the secondary market”, said Li. (See: MNI: China Should Limit IPOs, Boost Growth To Lift Stock Market), whilst significantly increasing on-site inspections to cover no less than one-third of companies planning to be listed. The CSRC will also push the Shanghai and Shenzhen stock exchanges to amend listing rules and improve the financial indicators of some sectors, as well as supervise the listing of unprofitable companies such as tech firms, said Yan Bojin, head of the Issuance Supervision Department at the same meeting.

MNI reported this week that China will increase stock market regulation, such as tighter IPO rules and strengthened law enforcement, to restore investor confidence. (See: MNI INTERVIEW: China To Strengthen Stock Market Oversight)