Amid China's Crackdown, Securities Reform Quietly Gathers Pace
- Worries about leverage push China to reform its IPO regime
- China seeking more institutional investment in stock market
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Brokerage executives have been detained, futures markets have been more or less shut down and tougher rules may squeeze out algorithmic trading. Yet behind the scenes, China’s securities market reforms are picking up speed again, six months after being set back by a $5 billion equities rout.
Among the signs of change: two foreign banks are close to getting securities licenses, discussions have been revived about a new stock market board in Shanghai for technology startups, and legislative approval for a more flexible system of approving initial public offerings could come as soon as this month.