Companies will soon be allowed to make initial public offerings in China, after the country’s securities regulator issued draft guidelines for share subscription and pricing. But the new rules may harm funds which rely on new share subscription.
The China Securities Regulatory Commission (CSRC) on May 22 issued its Guiding Opinion Concerning Further Reform and Improvement of the System for Offering of New Shares (Draft for Comments) (关于进一步改革和完善新股发行体制的指导意见 (征求意见稿)) for public comment until June 5. One significant change in the rules says that institutional investors must use either the online or offline...
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