Tighter M&A rules proposed

The China Securities Regulatory Commission has proposed tightening requirements for large mergers and acquisitions, the Wall Street Journal reported. The proposed rules would require two-thirds, instead of the current minimum of half, of shareholders with voting rights to approve deals by listed companies. The regulator also proposed that in private placements, companies that inject assets into their listed arms in return for new shares must hold the securities for at least 36 months, up from 12 months. The regulator also said it was creating a board that would review mergers and acquisitions to increase transparency. The new measures are supposed to rein in a soaring stock market and speculation around corporate restructurings.