China outlines rules for IPOs

China has announced tougher requirements for companies planning initial public offerings which analysts said would make it more difficult for unprofitable or shell businesses to float on the domestic market.


The rules, posted by the China Securities Regulatory Commission in state media on Monday, bar companies that have recently undergone major management or structural changes from listing and limit the scale of individual issues to twice the value of the company's net assets.

They also ban listings of companies that rely on their largest shareholder for more than 30 per cent of sales and of companies whose purchases from the major shareholder account for more than 30 per cent of expenditure.

Chinese stock markets, among Asia's worst performers this year but still widely considered to be overv...