SHANGHAI/HONG KONG : China's surprise move to slow the pace of mainland initial public offerings in an attempt to bolster the secondary market will cloud the fundraising plans of hundreds of companies and will weigh on the economy, bankers and lawyers said.
There has been $39.7 billion worth of IPOs so far this year, Dealogic data showed, down from $68.2 billion at the same time last year, but more than double the $13.1-billion raised in the United States. "Slowing the pace of IPOs will have little impact on the equity markets but will further dampen access to capital for the private sector at a time when the economy sorely needs a boost," said Orient Capital Research Managing Director Andrew Collier.
Bankers said that the regulatory move to slow the pace of IPOs goes against Beijing's IPO reforms earlier this year, which sought to remove government intervention and introduce a U.S.-style registration-based IPO mechanism, among other things.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »