CHINA moved to calm market concerns about recent heavy equity issuance amid signs investors are losing interest. The securities regulator won’t adopt a “Great Leap Forward” approach to intensively granting approvals for initial public offerings (IPOs), China Securities Journal said Sunday, citing a source close to the China Securities Regulatory Commission. The report added the agency will approve future proposed IPOs at a “steady” pace and according to market conditions. Several other domestic media outlets echoed the report yesterday. They mentioned the China Securities Regulatory Commission will look to limit risks in the IPO market. The published comments follow a flurry of recent IPOs that have seen quick price pullbacks on the stock market. Investor demand to participate has also cooled, with the country’s biggest stock listing since 2010 drawing the smallest oversubscription rate from retail investors for a Chinese IPO in almost half a decade. “The media reports show the regulator aims to strike a balance between deepening reforms and the affordability of the secondary market,” said Fu Lichun, analyst at Northeast Securities Co. (SD-Agencies) |