Ex­ports, up­grad­ing power up ex­pan­sion in first half

China Daily (Hong Kong) - - BUSINESS -

For­eign in­vest­ment helps Chongqing stand out among other in­land cities.” Michael En­right, pro­fes­sor at the Univer­sity of Hong Kong

China’s top se­cu­ri­ties reg­u­la­tor said on Wed­nes­day that it will main­tain a reg­u­lar pace of ap­prov­ing ini­tial public of­fer­ings to help com­pa­nies raise funds and al­low the cap­i­tal mar­ket to bet­ter serve the econ­omy.

In a state­ment is­sued af­ter a meet­ing of the China Se­cu­ri­ties Regulatory Com­mis­sion, the reg­u­la­tor said it will strengthen the re­view of IPO ap­pli­ca­tions to en­sure the qual­ity of new share sales while main­tain­ing the “nor­mal­iza­tion of IPOs”.

The CSRC has ac­cel­er­ated the process for IPO ap­provals since the A-share mar­ket sta­bi­lized from a dra­matic rout in 2015 that prompted the reg­u­la­tor to freeze new share sales to stem the mar­ket plunge.

An­a­lysts said that Wed­nes­day’s state­ment showed that main­tain­ing a nor­mal pace of ap­prov­ing share sales and restor­ing the cap­i­tal mar­ket’s fundrais­ing func­tion will be a key pri­or­ity of the reg­u­la­tor, es­pe­cially against the back­drop of cut­ting cor­po­rate debt and re­duc­ing lever­age as key re­form mea­sures adopted by the cen­tral gov­ern­ment. bil­lion

money raised by 246 com­pa­nies listed in Shang­hai and Shen­zhen in the first half

Pres­i­dent Xi Jin­ping has called for the stronger ca­pa­bil­ity of fi­nan­cial mar­kets to serve the econ­omy and the ex­pan­sion of di­rect fi­nanc­ing chan­nels for com­pa­nies, in­clud­ing stock and bond is­suance, at the re­cent Na­tional Fi­nan­cial Work Conference.

“Keep­ing a nor­mal pace of IPO ap­provals will be a main task of the reg­u­la­tor as fundrais­ing is a core func­tion of a cap­i­tal mar­ket,” said Chen Ji­ahe, chief strate­gist at Cinda Se­cu­ri­ties Co Ltd.

“It is a pos­i­tive sign that the reg­u­la­tor seems to be re­duc­ing its ad­min­is­tra­tive in­flu­ence in the mar­ket, which will help nur­ture a healthy cap­i­tal mar­ket in China,” Chen said.

The Chi­nese main­land’s two largest stock ex­changes in Shang­hai and Shen­zhen have seen a surge of new list­ings in the first half of the year as the reg­u­la­tor speeds up the ap­proval process to clear the long queue of com­pa­nies wait­ing to get listed.

“Sta­bil­ity in China’s stock mar­kets gave reg­u­la­tors con­fi­dence that in­creas­ing the num­ber of new list­ings would not nec­es­sar­ily di­lute liq­uid­ity and un­der­mine the price of ex­ist­ing shares,” lead­ing law firm Baker & McKen­zie said.

A to­tal of 246 com­pa­nies listed in Shang­hai and Shen­zhen in the first half of the year, rais­ing 125.5 bil­lion yuan ($18.6 bil­lion), up by 336 per­cent year-on-year, ac­cord­ing to ac­count­ing firm Pricewater­house­Coop­ers.


An AI robot per­forms a dance rou­tine at a high-tech expo held in Chongqing.

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