The expectation that China's initial public offering market will be reopening soon has been growing among bankers and investors. They expect that the country may allow new share sales to start as soon as this month. The expectation was prompted by the consultation between Chinese regulators and its lawyers, bankers, and fund managers last month. The consultation aimed to improve the system of listing shares as well as the quality of the listed companies.
The reopening of the IPO market would be good news for companies which are waiting to be listed on the market. Seven months ago, China put a stop to initial public offerings. As a result, more than 700 companies were struggling with tight credit and a slowing economy. These problems cut off other sources of financing.
However, investors were cautious. The market closed because of poorly performing IPOs of recent years, which contributed to the market's bleak performance. Because of this, investors have placed their money on high-yielding, though risky, products and property.
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