China will revamp its initial public offering regime to a western-style system under which companies can go public on their merits, the Wall Street Journal reported Sunday. At present, the government decides which companies can list. The shift is a significant loosening of government control over China’s struggling stock markets which have performed dismally despite strong economic growth. The change would remove a major regulatory obstacle that has been criticized for distorting supply and demand and artificially inflating valuations of new listings, the report said.
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