Market principles melt in China’s IPO reform

Five companies halt their listings as the CSRC tweaks its new rules, leading to worries that the regulator will continue to meddle with the process and ignore market principles.

Mainland China’s IPO reform is barely a week old and already the wheels could be falling off.

The China Securities Regulatory Commission is in the spotlight over whether it is being too protective and failing to let market forces do their thing, a supposed aim of the changes.

With the IPO market only reopening this month after a 14-month suspension, the securities watchdog surprisingly stepped in last Friday to stop one of the first planned deals.

Jiangsu Aosaikang Pharmaceutical, a drug manufacturer founded in 2003, had almost finished its Rmb4.05 billion $664 million offering on ChiNext the Chinese version of Nasdaq when things...

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