China Will Impose Strict Rules for IPOs

China can impose strict rules on public offerings on the Nasdaq-like Star exchange, where technology shares are traded.

China will impose strict rules on IPOs. The country brought to the agenda to impose strict rules on public offerings on the Nasdaq-like Star stock market traded in Shanghai. According to the plan, some new regulations will be implemented, such as proving the competence of companies in technology. According to information obtained from sources close to the subject, the China Securities Regulatory Commission will be able to implement the new regulations next month. With this regulation, there will be an increase in audits regarding the financial status of companies in order to protect investors and companies. The sources stated that the stricter regulations will be challenging for financial technology companies such as Ant Group, owned by the famous billionaire Jack Ma, and applications will be scrutinized. China Securities Regulatory Commission and Shanghai stock exchange did not make a statement on the issue. With the said regulation, it is also stated that the public offering of Ant Group, which was previously suspended, will become difficult. Ant Grup's public offering of 35 billion dollars was suspended in November, citing the company's business model as a reason, following the revisions in the fintech regulation. The officials state that some companies are again directed to suspend their public offerings on the Star stock market.