New IPO design to better protect investors

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A closed-door meeting between regulators and market participants last week focused on initial public offering (IPO) reform, the China Securities Journal reported on Monday.

Allotment of shares and the number of offline placements were among the topics discussed in an effort to optimize new issues pricing and protect individual investors, according to participants, including investment banks and academics, the report said.

The China Securities Regulatory Commission in June began seeking public opinion on an IPO mechanism reform plan. The plan provides greater freedom in IPO launch timing as well as pricing of new stock issues by allowing qualified individual investors to participate in offline placements.

The document also introduces stricter rules on the controlling investors, board directors and senior management of listed companies in order to better protect the interests of ordinary investors.

IPOs on China's Shanghai and Shenzhen stock markets have been suspended for nearly one year, and market expectations are growing for their resumption.

• China commercial credit IPO
• Alibaba is waiting for an IPO
• IPO reforms draw skepticism in some quarters
• Chinese shares jump over IPO delay reports
• Chinese shares jump over IPO delay reports
• Alibaba: Biggest public offering since Facebook
• PwC: HK IPOs expected to boom this year
• IPOs likely to resume in H2
• Lack of liquidity, IPO concerns push stocks to six-month low
• Chinese shares dip over IPO resumption concerns

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