Closer Look: New IPO Policy Seeks to Cap Raising of Excess Capital

(Beijing) – A new policy for initial public offerings has required early private investors in a company going public to sell some of their shares if the IPO is expected to raise more capital than needed.

This requirement seems aimed at the ChiNext board for growth enterprises in the Shenzhen Stock Exchange. Since the board was launched in 2009, investors have enthusiastically pursued almost all stocks listed on it.