China may lift a 12-month ban on new share sales this year following a Chinese Communist Party (CCP) policy summit, according to the nation’s largest brokerage by market value.
Top party officials will meet in Beijing from Saturday to Tuesday to map out a blueprint for reform. Regulators suspended initial public offerings (IPOs) in October last year and pledged not to lift the ban until new rules are introduced to curb misconduct and boost protection for investors. The benchmark Shanghai Composite Index, which plunged to the lowest levels in four years in June, has since rallied 10 percent.
“We still have reasons to believe that the IPOs may resume before the end of this year, as the policy meeting ends Nov. 12,” Boming Cheng (程博明), president of Citic Securities Inc (中信證券), said in New York, where he was attending the Chinese Finance Association’s annual conference.
The China Securities Regulatory Commission (CSRC) is drafting rules to curb misconduct that would establish stiff penalties for investment banks before ending the freeze on IPOs. The CSRC regulations, published in draft form on June 7 on the agency’s Web site, call for penalties against banks for transgressions such as including inaccurate information in a prospectus and poor risk disclosure.
Of the 622 companies that have submitted self-inspection reports, 268 have withdrawn their IPO applications, according to an Oct. 11 statement on the CSRC Web site.
China has not had a new listing since Oct. 11 last year, when Org Packaging Co (奧瑞金包裝) and Haixin Foods Co (海欣食品) started trading in Shenzhen.
The restart of IPOs will be a “big negative” for the market, Zhang Yanbing (張彥斌), analyst at Zheshang Securities Co (浙商證券) in Shanghai said. “It will exacerbate the fear of tight liquidity. Small-cap companies, which are already performing badly because of the high valuations, will be hit because money would be diverted to the new companies.”
The securities watchdog has not said when the new rules will be implemented.
The market freeze has been a blow to investment banks, whose revenue had soared as China became the world’s biggest market for IPOs in 2010.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion