A senior securities regulator claims that Chinese initial public offerings (IPOs) are overpriced, and has urged institutions to be more accountable and restrained, Reuters reported, citing state media. Zhu Congjiu, assistant to the chairman of the China Securities Regulatory Commission, told a seminar on IPO reform that, "[institutions should] strengthen their self-regulation, improve their research capability, price-setting ability and accountability, and in the book-building process they must do their utmost to express their true intentions." Zhu’s comments followed the news that China XD Electric failed to reach its IPO price on Thursday, becoming the first new Chinese share to do so in more than five years. "Some institutions are simply profit-driven and are not responsible when proposing a price. This has helped drive up IPO prices," he added.
Categories