China Securities Regulatory Commission has launched an investigation into 13 underwriters and 44 institutions in its latest bid to curb highly valued initial public offerings, South China Morning Post reported. The CSRC insisted that the newly reformed offering mechanism would safeguard the interests of retail investors when the listing market was reopened. The new system required applicants to fully disclose information on earnings and operations before the CSRC vetted the documents, while letting public investors decide their worth. Reforms haven’t been implemented yet and pricing power is still in the hands of the underwriters and institutional investors during the off-line subscription phase.
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