Top Biz News
Brokers brace for tighter rules
(Shanghai Daily)
Updated: 2007-03-23 16:02
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GF Securities Co in September proposed to buy control of Shenzhen-listed Yan Bian Highway Construction Co as it aimed to become the first domestic broker to go public in almost four years.
But the deal has yet to gain regulatory approval partly because the watchdog suspected some senior GF executives benefited from buying shares in Yan Bian before the news was released, Caijing Magazine reported on Wednesday, citing unnamed sources.
"The higher requirements on back-door issues may prompt brokers to favorinitial public offerings, which are less complicated," said another Shanghai-based securities executive.
The source noted that local brokers such as Everbright Securities Co and Orient Securities Co have scrapped original plans for back-door listings but instead pursued the IPO path as early as next year.
Most Chinese brokers posted losses in the four years ended 2005.
Their losses prevent them from seeking IPOs.
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