China's stock exchange has released new rules requiring sponsors of initial public offerings buy and hold shares they help to sell, which will substantially increase sponsors' demand for capital. The expectation for the new rules had fuelled a wave of fundraising by investment banks and securities firms.
Sponsors of initial public offerings (IPOs) on the upcoming Nasdaq-style Shanghai Science and Technology Innovation board are required to buy 2 - 5 per cent of the shares they help to sell . . .
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