CSRC Reins In Private Stock Placements to Curb Abuse

(Beijing) — China is hitting the brakes on private placements of stock in the wake of signs that the equity financing method has been abused by many public companies — favoring selected investors with lower prices and hiding information from others.

The amount of funds raised by listed firms from private placements in November has fallen to less than 40% of all equity investments, down from an average of 92% for the previous 10 months, according to data provider Wind Information.