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China's securities watchdog to enhance IPO supervision

English.news.cn   2014-01-12 23:34:33            

BEIJING, Jan. 12 (Xinhua) -- The China Securities Regulatory Commission (CSRC) on Sunday announced new measures to tighten the supervision of the Initial Public Offering (IPO) process.

According to the announcement on its website, the CSRC will launch spot checks on the enquiry and IPO road shows of new shares. The issuers and major underwriters that apply undisclosed information during the road shows will be subject to the suspension of their share issuance and to supervision measures, even punishment if illegal deeds are found.

Issuers and major underwriters must publish timely investment risk reports, at least once a week, during the three weeks before online subscription, if the price earning ratio (PE ratio) of proposed offering price, or the price ceiling, exceeds the average PE ratio of the peer listed companies in the secondary market, according to the CSRC.

The investment risk report shall mention the difference between the issuers and peer companies and the impacts of valuation, and warn the investors of the risks, the announcement said.

The CSRC also said it will carry out spot checks on the offering procedure of offline investors. The disqualified ones will be recorded and published in regular blacklists.

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Video >>> China to implement strict IPO subscription rules

CSRC will need to show teeth in time

BEIJING, Jan. 1 (Xinhuanet) -- The China securities watchdog, the China Securities Regulatory Commission, reportedly conducted a series of seminars in Beijing recently for selected stockbrokers and investment bankers to brief them on the new IPO rules that, as expected, are based on the concept of self-regulation in disclosure and pricing.

Some participants were quoted as saying that the CSRC officials obviously tried their best, at the risk of sounding like broken records, to beseech their listeners at the seminars that it's the market participants' obligation to voluntarily observe the standard laid down in the new code. Full story

A rocky restart to IPOs

BEIJING, Jan. 7 (Xinhuanet) -- Chinese shares nosedived to a five-month low on Monday, calling for effective regulatory measures to fix the languishing stock market. And the ongoing reform of initial public offerings (IPOs) to mend a market in which a regulator-guided pricing system failed to prevent consistently excessive offering prices is surely one of them.

While the regulatory authorities are doing their best to ensure a successful restart for IPOs as early as this week, they should not underestimate the worries of Chinese investors. On the domestic front, the one-third drop in the Shanghai Composite Index in the past four years forced many investors to reconsider their decision to invest in stocks when property prices are shooting through the roof despite repeated government warnings. Full story

China approves five new listings, resumes IPOs

BEIJING, Dec. 31 (Xinhua) -- China's state securities regulator approved the listing of five companies on Monday evening, signaling the resumption of initial public offerings (IPO) on its stock markets after a break of more than one year.

More companies will receive approval in the coming days, and about 50 companies are expected to complete preparation for listing by the end of January, Tuesday's China Securities Journal reported.  Full story

Moody's: IPO reopening positive for Chinese finance

BEIJING, Dec. 5 (Xinhua) -- Rating agency Moody's said on Thursday that reopening initial public offerings (IPO) on the Chinese stock market is positive for banks, insurers and securities companies.

China Securities Regulatory Commission (CSRC) on Sunday announced a overhaul that will reopen the IPO market after a hiatus of more than a year.  Fulll story

Editor: Yang Yi
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