China is considering reforming its volatile IPO
market. But the 2015 market crash has made the nation more
China's IPO regulatory approach has swayed between
liberal and conservative extremes while bouncing along with the
ups and downs of its secondary market. How and when can China
establish a market-based regulatory system?
As of June 30 2016, there were 2,887 listed companies on the
Shanghai and Shenzhen stock exchanges with a total
capitalisation of RMB51.61 trillion ($77 billion). This gives
China the world's second-largest stock exchange market behind
only the US. Since 2000, the China Securities Regulatory
Commission (CSRC) has commissioned the Shanghai Stock Exchange
to further develop the main board and commissioned the Shenzhen
Stock Exchange to develop the small and medium-sized enterprise
board and the growth enterprise board (GEB).
From its beginning in 1990, China's IPO market has been
constantly plagued by an extremely long backlog...