FT: China is going to limit the listing of companies from certain sectors
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The China Securities Regulatory Commission (CSRC) plans to stop issuing permits to list shares on Chinese stock exchanges for companies from certain sectors. The newspaper reported Financial Times (FT) citing sources.
According to the FT, companies from the food industry have already received the “red” status. Companies that produce tests to detect coronavirus are also subject to restrictions.
The CSRC has also given yellow status to companies in the apparel and furniture sectors. Their IPO bids will be scrutinized more carefully.
Analysts at the FT said the move shows China’s efforts to make stock exchanges serve the national agenda. Experts note that earlier the CSRC promised not to impose restrictions on the placement of securities on exchanges.
In 2022, 428 Chinese companies raised 587 billion yuan ($87 billion) on exchanges in Shanghai and Shenzhen. More than 760 companies are in the process of IPO on Chinese exchanges, some of them may be affected by CSRC restrictions, the FT notes.
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