Reuters reveals how China’s bankers in uncharted waters as Shanghai launches new board

Reuters reported exclusively how Chinese bankers are entering a new world as Shanghai launches its new Nasdaq-style technology board, complete with the country’s first registration-based IPO system that is seen by some as the boldest reform yet in China’s capital markets. Until now, guidance set by Chinese regulators on the pricing of initial public offerings had led to artificially depressed valuations, making it easy for bankers to find investors. Chinese bankers, like their Western peers, now have to set IPO prices that reflect a company’s growth potential and risks, as well as the market mood and issuers’ expectations.