Date
12 December 2017

Preferred stocks trial only after all rules in place, paper says

Although the market has been abuzz with talk that China could kick off a trial scheme for preferred stock issuance as soon as this week, sources close to the regulators have insisted that the program can be rolled out only after all the relevant regulations are in place, Shanghai Securities News reported Friday. Banks saw their share prices supported Thursday due to speculation that they would comprise the initial list of entities allowed to issue preferred stock. Qiao Yongyuan, an analyst with Guotai Junan Securities Co. Ltd., was quoted as saying that the pilot scheme could help convert debt into equity, mitigating some of the risk of shadow banking in the market.

– Contact HKEJ at [email protected]

EL/AC/RC

 

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