China seeks to tighten IPO rules but experts wary

China seeks to tighten IPO rules but experts wary

FILE PHOTO: A Chinese flag flutters outside the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China February 8, 2024. REUTERS/Florence Lo/File Photo

China is tightening its grip on the country’s stock market with a set of new guidelines, hoping to arrest the protracted slump in share prices, improve the quality of listed companies, and restore investor confidence. Market observers, however, warn that the measures could jeopardise the landmark overhaul of the IPO system introduced five years ago and shut out innovative small companies in emerging industries.