Chinese Stock Market Rises as IPO Registration Process Announced

China stocks rose on Thursday as investors responded positively to a government announcement that it would shift to a U.S.-style registration system for initial public offerings within two years, a transition regulators described as being “gradual”.

The CSI300 index rose roughly 1 percent, while the Shanghai Composite Index edged up 0.6 percent.

Adopting the new IPO system means that the market, instead of regulators, would decide which firms get to list and for how much. But that has fueled fears that a large number of companies could rush to the stock market for fundraising at the same time.

In an apparent move to ease investors’ concerns, China’s securities regulator said that the reform will be a gradual process, and the IPO floodgate would not be opened all of a sudden.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza