Shenzen stock index fell 4% and Shanghai stock index dropped 1%. China stock markets fell on Monday
after the regulators issued new rules for reforming the country's share sale
market over the weekend.
People fears that the new listings might not leave enough cash in the market. The rules are likely to see listings resume next year, ending a freeze that
has lasted more than a year.
I look at it, the rules should be positive to the market especially in the long run. An example of the key issues addressed by the new rules are "limiting the government's
influence over the pricing of share offers and boosting transparency". The securities regulator "would only be responsible to decide whether companies
fulfil the rules".
The "values and risks would be for investors and the market to judge".
US and Europe economics have lot of problems over the past few years. Where else China GDP has been above 7% and it even overtake Japan to become the second larger economically country. But if we look at the China stock market as compare to the US, German, France, London and Japan, they are far apart.
The freeze on China IPO over the past one and the year has affected the market from advancing. The investment fund in China has gone into property. That's the reason why, no matter what cooling measured the China government implemented, the property price still continue to rise. Thirdly, China stock market maturity. Outsider is not allow to buy China share in the China stock market. If it does, thing will be different.
There are so many companies in China on queue, waiting for listing. It is important on how China Securities Regulatory Commission
(CSRC) control, carry out, review, conduct checks to ensure that information provided by the firms looking to list was full and accurate, transparent.....to approved as part of reforming the country's stock market listing system.supervision to the issuance process. This is something that we need to watch out.
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