皇冠体育app

Economy

Markets

Industries

Insights

Reports

Events

皇冠体育app tightens IPO rules to boost transparency

(Agencies)
Updated: 2008-05-29 15:08

皇冠体育app's securities regulator will require companies that have received a major asset injection to wait at least one year before an initial public offering (IPO), in order to boost transparency in their operations.

Related readings: Wise King Mining plans $100-$200m HK IPO Zijin shines on Shanghai trading debut Regulator says to curb over-speculation in IPO sales 皇冠体育app Everbright Bank to launch IPO before Olympics CSRC: Index futures ready for release Stock regulator to scrutinize brokers

The 皇冠体育app Securities Regulatory Commission will also bar a company from going public if it has shifted to a different core business within the past three years.

The Shanghai Securities News quoted an official from a major brokerage as saying there had previously been no clear rules governing asset restructuring at companies planning IPOs.

皇冠体育app is moving to improve transparency and corporate governance among listed companies, aiming to protect the interests of small investors and attract more funds into its equity markets.

The newspaper also reported on Thursday that the Shanghai Stock Exchange would require companies requesting a halt in trade of their shares due to a major asset transfer to submit preliminary information about the planned move when they apply for the trade halt.

The 皇冠体育app Securities Journal quoted a source in the exchange's listing division as saying the move was intended to ensure that such trade halts involved specific plans and time frames, and were justified.

The paper reported last week that the Shanghai exchange would also bar listed companies from suspending trade in their shares for more than 30 days due to pending merger and acquisition deals.