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Briefing
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- Faster IPO Process – China Securities Regulatory Commission (CSRC) considers introducing faster Initial Public Offering (IPO) process for selected companies
- Potential Short Listed Firms – Include Ant Financial of Alibaba Group, world’s most valuable financial technology company valued at $60 billion, Zhong An Online Property and Casualty Insurance, and security software maker Qihoo 360 Technology Co.
- Stock Exchange Competition – China losing out to New York Stock Exchange (NYSE) and Nasdaq on key technology listings, including Alibaba’s record $25 billion IPO on NYSE in 2014, told Reuters
- Long and Slow Process – 700 companies in China are lined up for approval to go public in Shanghai or Shenzhen, while it takes 18 months or longer to raise funds, making it unattractive for fast-growing technology firms in need of investments to fund expansions
- More Commercial Exchange – According to China Daily, CSRC wants to reduce government intervention and allow commercial market to take bigger role in stock exchange as part of reforms, which can bring additional capital to market
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Market Disruption
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Sector
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Financial Services, Information Technology
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Organization
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Alibaba Group Holding Ltd., Ant Financial Services Group, China Securities Regulatory Commission (CSRC), Qihoo 360 Technology Co. Ltd., Zhong An Online P&C Insurance Co. Ltd.
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Source
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Original Publication Date
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February 24, 2017
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