The securities regulator has effectively reopened China's domestic markets for initial public offerings after a year-long hiatus, the South China Morning Post reported. A statement on the China Securities Regulatory Commission's website said it had resumed granting approvals for public share sales from Thursday. The regulator also released revised rules on new IPOs, largely unchanged from an earlier draft but including a new provision barring firms whose net profit came in 30% or more below forecasts from making public offerings for three years. The draft rules, which are open for comment, also forbid non-financial companies from lending the proceeds of their IPOs to other parties or from investing the proceeds in companies of which the core business is securities trading. The Shanghai and Shenzhen markets have grown more than 40% this year to two-year highs, although the Shanghai Composite Index fell 0.48% Thursday.
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