Investors responded positively to the news that the China Securities Regulatory Commission (CSRC) will be ending the moratorium on initial purchase offerings (IPO) and amending rules for approving companies to trade on stock exchanges. With up to fifty companies reportedly ready to go public by the end of January 2014, investors will have a lot of choice when adjusting their investment portfolios. It is anticipated that the companies approved for IPOs will start the ball rolling and open the way for the almost 800 companies currently waiting for approval to trade publicly.
The moratorium on IPOs was put in place in an effort to support embattled equities, and the benchmark Shanghai Composite, which had lost more than 22% of its value in a three year period, rose around 10% while IPOs were on hold. It remains to be seen how the easing of IPO regulations will impact the stock market index.
The current IPO approval process is time consuming and known to favor state-backed enterprises over privately owned small and mid-sized companies. In future companies will be required to meet basic requirements, including high levels of transparency, and the market will be allowed take its course in evaluating viability and the potential for future earnings of newly listed companies. This update on IPO rules is part of the blueprint for reform formulated during last month’s Communist Party meeting.
In addition to addressing social issues ranging from air pollution to land rights to China's one-child policy, the reform plan includes up to sixty tasks related to economic priorities in the country over the next ten years. The trend will be toward encouraging domestic consumption and innovation, while moving away from an export-driven economy. Investors have welcomed the reform plan, and markets have responded positively. While there are bound to be some hurdles to overcome in implementing the reforms, the general opinion among analysts and investors is that authorities are heading in the right direction for sustaining China's economic growth.
China Finance: VIPs' short seller 'leak' hit shows extent of swayZawya (registration)I closed out a good trade yesterday, one that I wrote about here as well, so you'd think I'd be in a pretty good mood today. Sadly the manner in which it happened takes much of the shine off the win. What happened was that speculaltion started ...and more »
Finance Minister leads high level delegation to ChinaJamaica ObserverKINGSTON, Jamaica ? Finance Minister, Dr Peter Phillip leaves the island Friday (December 13) for China to participate in meetings with authorities in the Chinese government and the Governor of the Chinese Central Bank. Dr Phillips leads a high-level ...and more »
The Express TribuneChina ready to finance Thar coal project: SECMC chiefThe Express TribuneAs International Financial Institutions (IFIs) refuse to extend financing to develop Thar coal reserves, China has offered to provide $900 million for mining and setting up power plants, seeking a guarantee from the federal government in order to go ...and more »
China's Quest to Take On the US Dollar Has a Long Way to GoTIMEFor years, they have railed against the dominance of the U.S. dollar in global trade and finance, complaining that it leaves the world at the mercy of erratic Washington politics and questionable economic management. China's leaders can only blame ...and more »
US Economy Will Trump China's in 2014Yahoo Finance (blog)It's that time of year for predictions: how will the stock market perform in 2014, which politicians will be elected, what country will lead global economic growth, etc. The Economist magazine recently unveiled its annual prognostications as well as ...
MacroBusiness (blog)China's shadow bank crackdown freaks financeMacroBusiness (blog)Foreign banks in China have warned that they will suffer severe ?collateral damage? from new rules aimed at limiting off-balance sheet lending by domestic banks. Beijing has drafted regulations to restrict interbank loans after financial institutions ...China Money Rate Declines to One-Month Low After Fiscal DepositsBloombergall 82 news articles »
- China-EU Summit: Green Growth in a Safer World - Editor, Wednesday 20 November 2013
- China's Job Market Faces 'Mismatch' in Skills - Editor, Wednesday 6 November 2013
- Forbes Lists China's Wealthiest People - Editor, Wednesday 23 October 2013
- New Vehicle Sales Soar in China - Editor, Wednesday 9 October 2013
- Shanghai Free-Trade Zone Approved - Editor, Wednesday 25 September 2013
- Rare Earth Element Exports and Stocks Increase - Editor, Wednesday 11 September 2013
- Alternative Energy Developments in China - Editor, Wednesday 28 August 2013
A recent report by China's Ministry of Commerce has noted that foreign investment into China for the period of January to October 2013 experienced an increase of 5.77 percent compared with the same period in 2012. The announcement was made ahead of the China-European Union summit set to start November 21 in Beijing. As the first EU summit with China under the country's new leadership, the agenda will include discussing how best to meet new policy challenges in a fast-changing world, particularly focusing on sustainable development and renewable resources.
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China's manufacturing sector, which relies heavily on assembly-line workers, is finding that young people moving into the job market are unwilling to apply for factory jobs, even though they can be relatively well-paid. An increasing number of young Chinese are obtaining university degrees and are looking for office based employment that will make use of their education. China's employment complexes give employers and prospective employees the opportunity to meet and discuss job opportunities, but factory managers have reported having difficulty in recruiting workers. This imbalance of available jobs and jobseekers has been referred to as a "mismatch" in skills.
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Every year American business magazine Forbes compiles lists in a range of categories, including who the World's most rich and powerful people are. Among these recently released compilations is the 2013 list of the Top 400 Richest People in China. The data has revealed that the top 400 richest people in the country includes 168 billionaires, an increase over last year's total of 113, which had dropped from the 2011 count of 146. There were quite a number of newcomers to the Top 400 list, and analysts have made some interesting observations regarding the changing trends in sources of wealth.
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