China cuts IPO red tape as new securities law takes effect

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China cuts IPO red tape as new securities law takes effect
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Revised legislation comes as authorities begin initiatives to attract large tech firm listings. FMTNews China

BEIJING: China’s new securities law which simplifies regulations for stock exchange listings and tightens sanctions on insider trading came into force Sunday.

It cuts red tape for initial public offerings, which no longer need prior approval from the China Securities Regulatory Commission . The amended securities law also offers better protection for minority investors and requires companies to establish dispute resolution mechanisms to address shareholder grievances and improve transparency.

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