• Mon. Oct 3rd, 2022

China Says It Will Not Block IPOs Made Outside The Country

BySam Brad

Jul 31, 2021

The Chinese government is increasing efforts to calm investors and try to end the declines that markets have suffered in recent days.

The authorities have once again emphasized that they do not intend to take action against other business sectors , after the latest regulation, approved last week, to limit the business benefits of the private education sector, has generated a wave of distrust in the markets of the country.

The regulator insists that the latest measures only seek to protect the interests of the country’s citizens, with the intention of strengthening the security of digital data on the network and defending “social welfare.”

To try to convince investors, Beijing has also ensured that it will not take action against IPOs outside its domestic market, another of the issues that have emerged in recent months and that increased investors’ fear after the sanction. to Didi by the regulator a few days after going public on the New York stock market.

The Chinese government’s commitment not to take action against companies just for deciding to go public in other markets is the latest news that has emerged about the measures being taken by the authorities of the Asian giant .

They would have met for the second time on Wednesday with representatives of the international banking system, with the intention of calming things down. According to Bloomberg , on Wednesday night the head of the Market Regulation Commission in China had the last telematic meeting, with representatives of Goldman Sachs and UBS, among others.

In addition, the agency highlights how some analysts are warning that part of the increases that the country’s stock market is experiencing in recent days have to do with the entry of government funds to the market, a measure that would be intended to create a cushion and increase investor confidence.

The rebound in Chinese stocks was especially notable on Thursday, with Hong Kong’s Hang Seng Index bouncing 3.3% during the session, and the CSI 300 almost 1.9%. The firms in the private education sector, which have suffered so much in recent days, experienced a particularly bullish session, with advances that reached 10% in some cases.

Sam Brad

The Great Writer and The Passionate Poet As Well, He Graduated from University Of Florida in Journalism and Brad have around 12 years of experience in news and media section.

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