Reuters – China sets out move to liberalize IPO rules to streamline listings
Caixin – China Approves New Securities Law with Registration-Based IPO System
The amended legislation, due to take effect from March 1, removes complex and time-consuming watchdog scrutiny before listings and is designed to expand registration-based IPOs.
Th requirement for a company to qualify for a new listing is lowered to being “capable of sustainable business operations,” from the previous more stringent “capable of sustained profitability.”
The revised law adds a new chapter on information disclosure.
it also contains provision for heavier punishment on stocks violations and pledges better protection for investors in general.
Dots to connect: fees for investment banks, stock performance for financial services companies, increasing power of exchanges, dropping value of “shell companies”, growing value of indexes, etc..