China’s equity market may be about to adopt a new method for pricing initial public offerings as securities regulators strive to tackle widespread concerns about overpriced share offerings, according to some analysts.
The newly appointed chairman of China Securities Regulatory Commission CSRC, Guo Shuqing, acknowledges that the problem is still very severe. “Many issuers come up with high prices but low asset quality,” he said in a statement, adding that some stocks have been “excessively traded” and that regulators must “firmly address these issues”.
Guo has also publicly questioned whether the regulator should simplify the tedious listing approval process.
His remarks,...