Regulators in China could soon unveil rules on the pilot scheme for preferred stock issuance, and a trial run of the program is expected to begin in the second half of the year, China Securities Journal reported Thursday, citing sources. The program, which will allow Chinese companies to issue preferred shares, is part of the nation’s financial reforms. The first batch of firms may cover those with high debt-assets ratio, including blue-chips in banking, energy, transportation, construction and coal sectors, the report said. Qilu Securities said in a research report that about 600 billion yuan worth of preferred stock could be issued by commercial banks.
– Contact HKEJ at [email protected]