China’s Path to U.S.-Style IPOs Confronts Get-Rich-Quick Culture
November 23, 2013 Leave a comment
China’s Path to U.S.-Style IPOs Confronts Get-Rich-Quick Culture
China’s plan to allow the market a greater role in initial public offerings hinges on stamping out a raft of practices that deceive investors, from lax underwriting standards to executives who falsify earnings to obtain higher valuations. The proposed switch to a U.S.-style IPO model comes after a 14-month moratorium on Chinese offerings and is part of a wider push by the Communist Party to lessen government control of the economy. The so-called registration system would leave questions of IPO supply and timing of deals to companies, not Chinese regulators who now must approve most facets of an offering. Hurdles abound, including creating a legal system robust enough to guard against stock-sale fraud. Read more of this post









