First batch of IPOs under new China listings rules surge on debut

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First batch of IPOs under new China listings rules surge on debut
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Near triple-digit gains point to need for more reforms in country’s equity fundraising system, say experts

The new rules aim to streamline IPOs by allowing Chinese companies to debut on the main boards of the Shanghai and Shenzhen stock exchanges without first gaining regulatory approval.

Yi Huiman, chair of the China Securities Regulatory Commission, said at a Monday morning listings ceremony that the reforms represented “comprehensive and fundamental change” and that the first batch of IPOs was “another important milestone in the reform and development of China’s capital markets”. Shanghai mayor Gong Zheng said on Monday that the new regulatory system would “forcefully push” China’s stock market towards better providing capital to priority sectors, as the Star and ChiNext boards already did.

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