Chinese IPOs raising money for greed, not need

Chinese issuers raised $32 billion more than they needed through A-share IPOs last year, according to Xie Wei from BoCom Schroder.
Struggling to spend his money
Struggling to spend his money

Money-crazed Chinese companies are raising much more capital than they need, according to a distinguished fund manager.

China’s listed companies have raised huge sums from stock markets, but at a cost. The newly issued shares have been overpriced and the excessive funds have proved difficult to spend, according to Xie Wei, deputy general manager of Bank of Communications Schroder Fund Management BoCom Schroder.

These observations are included in Xie’s proposal to improve the regulation of the A-share market, presented to China's annual National People's Congress NPC. The 10-day meeting kicked off on Saturday March 5.

Xie, who is the asset-management...

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