IPO momentum builds as regulator relaxes oversight

As July opened, China's market regulator approved the first large initial public offering since September 2008. The IPO was the first Shanghai listing to be made under new listing rules which show a clear move toward a more market-drive approach.

The China Securities Regulatory Commission (CSRC) gave the go-ahead on July 1 for Sichuan Expressway to proceed with its 500-million-share IPO on the Shanghai Stock Exchange. The listing will take place under the China Securities Regulatory Commission's Guiding Opinion on Further Reform and Enhancement of the System for Offering of New Shares (关于进一步改革和完善新股发行体制的指导意见).

According to the text of the Opinion, its aim is to “further improve mechanisms and enhance efficiency” and to be “responsive to the further greater development of the market”. This trend was reflected in a recent interview with IFLR, a sister publication of CLP, when Ven Tan of Morrison & Foerster said he thought the CSRC was being more flexible with its approval of listings by PRC companies, both at home and abroad.