CLAIMS THAT CHINA'S FREEZE ON IPOS WILL HINDER THE MARKET
November 10, 2008 | BY
clpstaff &clp articles &The China Securities Regulatory Commission's (CSRC) recent temporary suspension on the initial public offerings (IPO) review won't help the market…
The China Securities Regulatory Commission's (CSRC) recent temporary suspension on the initial public offerings (IPO) review won't help the market in the long-term, according to Jeffrey Maddox, partner at Jones Day.
“These types of measures never help a market in the long-term, and any short-term benefits are quickly swallowed by the market due to the uncertainty and lack of transparency of market regulation in the PRC,” he said.
The government's “reactionary and capricious regulation” is increasingly creating difficulties for companies while driving investors away, he said.
Maddox said the CSRC's regulation is an attempt to limit new primary issuances in its on-going efforts to try and shore up the trading markets for listed companies.
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