China to Scrap IPO Upfront Payments From Jan. 1 in Interim Step
- New rules were first announced in November as halt lifted
- Shift to registration-based system may begin as soon as 2016
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China will scrap the upfront payment rule for initial public offerings from Jan. 1 as regulators seek to create a more level playing field for the country’s army of individual investors before the start of more substantial reforms.
The announcement Thursday by the China Securities Regulatory Commission confirmed plans first announced in November, when the regulator lifted a suspension on new share sales imposed at the height of a $5 trillion stock market rout.