Press reports indicate that the China Securities Regulatory Commission has granted approval for resumption of domestic IPOs from November 20:
This should increase the likelihood that pending buyouts of US-listed Chinese companies will be completed.
IPO of a Chinese operating subsidiary would be an alternative means by which companies currently listed in the US could access the higher valuations available in China in a way that benefits all current shareholders. MNC Media will be able to resume its plans to pursue this option and I suggested this option for Jinpan.
The domestic Chinese market shows a huge divergence between weak returns from large cap value stocks and manic performance of speculative small caps:
Launching frozen IPOs into a red hot market is likely to result in lukewarm index returns. This would fit the government’s long-term policy goal of a more professional financial market that can be a vehicle for savings rather than speculation.