The China Securities Regulatory Commission (CSRC) has released an IPO reform plan, signalling the re-opening of China’s IPO market after a 13 months moratorium.
During this hiatus, approximately 500 companies that were waiting to conduct their public offering had the process delayed, while other companies who were moving towards the same objective also had no timetable for when their IPO might occur.
According to the plan from the securities regulator, the review of IPO candidates will focus on necessary information disclosure. The CSRC will not make a judgment on the profitability and investment value of listing candidates.
The validity of listing approval is extended from six months to 12 months.
Around 50 firms are expected by the regulator to complete their IPO preparations in time to go public by January 2014.
Bond order limits
The Shanghai Stock Exchange (SSE) adjusted the upper limit to the amount of single bond orders in the exchange’s trading rules. The move occurred on 9 December and was attributed to the demands of institutional investors for larger order sizes.
The exchange has lifted the maximum amount of single order in bond trading and bond collateralised repos in the auction system from 10,000 lots to 100,000 lots. The face value of those orders now increases from RMB10 million to RMB100 million.