China’s securities watchdog is forging ahead with rules that allow brokers to invest in complex financial products and enter risky new businesses even after an unprecedented $3.8 billion trading error roiled markets.
Jiangsu Aosaikang Pharmaceutical Co. postponed its 4.05 billion yuan ($669 million) initial public offering, which would have been the biggest on China’s market for startups, after pricing the deal 21 percent higher than the industry average.
China may relax or abolish a rule that requires Renminbi Qualified Foreign Institutional Investors to keep most of their funds in bonds, according to the Hong Kong Monetary Authority, a move that may boost demand for stocks.
Guo Shuqing, chairman of China Construction Bank Corp., said China should introduce junk bonds to provide smaller private companies with new funding channels as the nation develps its debt capital markets, the Financial Times reported, citing an interview.
Iron Mountain Inc. and Equinix Inc., two technology companies planning to convert to real estate investment trusts, plunged after saying that the U.S. Internal Revenue Service is scrutinizing their eligibility.
China’s likely search for a successor to Zhou Xiaochuan as central bank chief is spurring focus on the nation’s banking and securities regulators as the incoming Communist leadership overhauls top government positions.