Related News

Home » Business » Finance

IPOs to resume before launch of GEM

CHINA is expected to resume new share sales on the main board ahead of its launch of the Nasdaq-patterned growth enterprise market, according to a senior official at the securities regulator.

"Preparations for initial public offerings and the GEM are proceeding and rules for the GEM are almost done, but the IPOs on the main board will resume earlier," said Wang Lin, deputy director of the public offering supervision department under the China Securities Regulatory Commission.

The CSRC implemented new IPO guidelines on Thursday, signaling the end of a nine-month IPO hiatus on the Shanghai and Shenzhen stock exchanges.

Wang said in an interview with China Central Television on Thursday that the new IPO guidelines will create a more market-oriented way of pricing new shares as well as protecting retail investors who were virtually shut out of major IPOs by big institutional investors who would win the lion's share of subscriptions.

More than 30 companies, including China State Construction Engineering Co Ltd, Everbright Securities Co and China Merchants Securities Co, have been waiting to list on the main board after winning regulatory approval and they are expected to raise more than 70 billion yuan (US$10 billion) combined.

In May, the CSRC implemented guidelines for the GEM which is a new financing platform for start-up firms. The GEM rules will take effect in July, but there is no timetable for its launch, although Yao Gang, vice chairman of the CSRC, hinted earlier that the GEM will be launched after August.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend