CSRC: Better IPOs to curb speculation

China's securities regulator says it will strengthen supervision of share IPOs to minimize uncontrolled speculative trading that could trigger a stock market crash.

The Chairman of the CSRC says one priority is improving how prices are determined. For example, when underwriters consult institutional investors on how to price an offer, the regulator will step in, if necessary, to ensure share prices are set in relation to levels of demand. The Securities Watchdog will also act to split offers fairly between institutional and retail tranches.

These moves are aimed at curbing excessive speculation in the subscription phase and make the subscription process itself fairer. The CSRC will also push for development of the corporate bond market, while working with other agencies regulating that market to encourage more insurers and banks to invest in corporate bonds.