Zhu Congjiu, assistant to the chair of the China Securities Regulatory Commission (CSRC), told reporters in Beijing today that China should allow pension funds to invest more money in domestic stock markets as the nation’s economic development fuels companies’ demand for financing, a Bloomberg report says.
Of the 67 new stocks that began trading this year, 18 have dipped below the offering price, according to data compiled by Bloomberg. More than 300 companies raised a record $70.7 billion from IPOs in Shanghai and Shenzhen last year and 54 of those companies are also below their sale price, the data show.
Zhu said China needs a better plan to direct more capital into the market. The securities regulator aims to make the approval process for corporate bond sales and follow-on stock offerings easier, he said.
The CSRC began reforming its new-equity market in 2009 by abolishing a price-to-earnings ceiling for the IPO price.