China tightens itemizing pointers to funnel funding to strategic sectors

China‘s inventory regulator is ready to cease native firms in sure sectors from itemizing on the nation’s important inventory exchanges, the Financial Times reported on Monday, citing two capital markets bankers accustomed to the matter.

The China Securities Regulatory Commission (CSRC) has knowledgeable bankers it has given some industries, together with meals and beverage and COVID-19 testing firms, a “crimson gentle” that stops them from fairness financing on Shanghai and Shenzhen important exchanges, the report stated.

The regulator has additionally acknowledged various “yellow gentle” sectors, which embrace attire and furnishings firms, the place itemizing requests would come below scrutiny if their development depends closely on debt for growth, the report stated.

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