Why new reforms from CSRC could change the IPO market

Top market regulator Guo Shuqing said at a forum in Beijing last week that his agency will use “rigorous measures” to clamp down on irregular practices, and that this will include amendments to the laws.

Guo made the comment following the release of Guidelines from the China Securities Regulatory Commission (CSRC) during the May holiday. The reform highlighted information disclosure and pricing control as the main concern as well as removing the lock-up period (the period of time after a company has gone public where company insiders or majority shareholders cannot sell any of their shares).