China to set up IPO firewall between bankers, analysts


Source: taipeitimes.com taipeitimes.com

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China’s securities association has drafted rules to set up a firewall between investment bankers and analysts in deals to ensure unbiased pricing of initial public offerings (IPOs), Shanghai Securities News reported yesterday. Bankers in an IPO deal are barred from discussing profit forecasts and valuations with analysts, who should make conclusions independently, the newspaper said, citing rules drafted by the Securities Association of China. Brokerages should also regularly check their internal firewall systems, according to the rules, which were distributed to brokerages for their opinions, the newspaper said. Such rules would prevent distortion of IPO pricing, protect investor interest in...