China Aims to End Age of Froth With New Stock Market Reforms
- Initiatives include boosting dividends, being stricter on IPOs
- This is a huge event for China’s stock market: Shanghai Youpu
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China is seeking to end the years of speculator driven boom-and-bust trading by pivoting toward value investment in its once-a-decade capital-market reform plan.
The “Nine-Point Guideline” published by the State Council last week includes measures to encourage dividend payments, improve the quality of new stock offerings and plug corporate governance loopholes. Some investors are hoping this will help spur a revival in the nation’s struggling stock market, much like the previous plans did in 2004 and 2014.