Chinese markets slip on IPO reforms

<p>IPOs are to be resumed in China.</p>

Chinese stock markets fell today (December 2nd) after it was announced that initial public offerings (IPOs) will be enabled once more from next year.

The Shanghai stock index dropped by one per cent following the news, while the Shenzen stock index fell by four per cent.

Zhang Yanbing, an analyst with Zheshang Securities, explained there are concerns allowing IPOs again could "divert funds from the secondary market".

Despite this, Mr Yanbing added that the rules "should be positive to the market in the long run".

The China Securities Regulatory Commission published the new guidelines as part of its ongoing reform to the country's stock markets.

Luke Wang, a vice-president at China Galaxy Securities, stated that once the new guidelines come into effect, "the IPO issuance process will speed up massively".

Major Japanese index the Nikkei was also down in trading today, but the market only slipped by 0.04 per cent over the course of the week's opening session.

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