Deals

China to Scrap Price, Debut Gain Limits to Entice Tech IPOs

New exchange to allow unprofitable firms, dual-class voting
China wants to avoid losing tech giants to offshore markets

China is trying to make it easier for tech companies to go public in the mainland. Bloomberg’s Lucille Liu reports.(Source: Bloomberg)

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By Bloomberg News

January 30, 2019 at 2:24 PM UTC

Updated on

January 31, 2019 at 2:54 AM UTC

This article is for subscribers only.

China will remove limits on initial public offering pricing and first-day gains under plans for a new tech-stock exchange aimed at avoiding losing the likes of Alibaba Group Holding Ltd. and Tencent Holdings Ltd. to overseas markets.

The proposed rules will also let unprofitable companies go public, allow dual-class voting structures and put in place stricter delisting measures, according to statements from the securities regulator and Shanghai Stock Exchange late Wednesday.