designed to control bear running rampant. Truly a "leap forward" that Mao can only dream of. USA needs to get a few dose of this medicine too, tasty.
China Tightens Share Sale Approvals to Revive Market (Update1)
By Zhao Yidi
Aug. 1 (Bloomberg) -- China is restricting approvals for share sales to keep new supply of equities from putting additional pressure on the world's worst-performing major stock market, two people familiar with the matter said.
The China Securities Regulatory Commission is delaying the issuance of written approval documents, the final regulatory stage, to companies preparing initial public offerings, said the people. They declined to be identified because they aren't authorized to speak publicly on the matter.
Shang Fulin, chairman of the securities watchdog, is trying to cushion a market that plunged 47 percent this year, making the CSI 300 Index the worst performer among the 20 biggest benchmarks. About a third of IPO applications were rejected last month, compared with 8.3 percent when stocks peaked in October, based on data from the regulator's Web site.
``Controlling share sales is an important tool for CSRC, and it's effective in the short term,'' said Leo Gao, who helps manage the equivalent of $2.3 billion at APS Asset Management Ltd. in Shanghai. ``More stock sales in a bear market is bad news'' for investors.
The right enemy
6 years ago