Deals
China May Change IPO Pricing After Scrapping Debut Trading Cap
- Regulator looking for ‘correct way’ to end 44% cap, Fang says
- IPOs are sure bet in China due to tacit limit on valuation
People walk along an elevated walkway as an electronic ticker displays stock figures in Shanghai,.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s securities regulator may consider changes to the current pricing mechanism of initial public offerings after removing the first-day trading cap, according to a senior official.
“I think the direction is clear,” Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said Thursday in a Bloomberg Television interview with Haslinda Amin on the sidelines of the World Economic Forum in Davos, Switzerland. He said it takes “careful consideration to find a correct way” to remove the cap.