China Exchanges to Improve IPO Pricing on Star, ChiNext Boards
(Bloomberg) -- China’s stock exchanges have issued revised draft IPO listing rules that may help realize better prices by enabling offline institutional investors to bid higher on Shanghai’s Nasdaq-style Star and Shenzhen’s ChiNext boards.
The modified rules include changing the highest quotation rejection rate to “no more than 3%” of the total offline subscription amount from “no less than 10%.” The bourses pointed out that some offline investors tend to quote same price levels to ensure successful subscription but end up disrupting the market. The move is meant to help restore order, they said.
Rules also include strengthening supervision of IPO pricing.
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