Business
China’s Ex-Top Regulator Advocates for Easing IPO Restrictions to Boost Market Growth: A Call for Enhanced Support for Tech Start-Ups and Emerging Firms
Ex-top Chinese regulator advocates for relaxation of IPO restrictions to bolster market expansion
Shang Fulin, speaking at the Bund Summit financial forum, emphasizes that the capital market outperforms banks in backing new businesses and prospective tech companies.
Shang Fulin, the previous overseer of China's mainland banking and securities industries, has recommended that concerned bodies ease their control over equity financing to boost advancements in technology.
The importance of China's stock market should be emphasized to aid investors and business owners in improving their evaluation of company worth, reducing risks, and increasing transactions, he conveyed at the Bund Summit financial forum in Shanghai on Friday.
"China's monetary structure has a fundamental issue because businesses predominantly depend on bank loans for funding instead of the capital market," stated Shang. "Compared to banks, the capital market as a funding platform is more effective in assisting start-ups and prospective tech companies during their periods of rapid growth."
In the initial eight months of 2024, 59 businesses secured 42.2 billion yuan (around US$6 billion) through Initial Public Offerings on the stock exchanges of Shanghai, Shenzhen, and Beijing. This figure is considerably less than the 304 billion yuan that 184 issuers managed to raise during the same period the previous year, as per the data presented by the Shenzhen Economic Daily.
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