China`s pledge to focus on the stable development of its capital markets will slow the pace of financial reforms as the world`s second largest economy works to balance domestic needs against financial liberalization, an analyst said Monday.
Regulators have postponed the new IPO mechanism that will give market forces a bigger role in valuations after a stock market rout in June 2015.
lifting restrictions on stock market that were in place after the crash or some other small thing," said Christopher Beddor, associate at Eurasia Group.
"What Liu is promising is stable market conditions, which is more or less what he is delivering on, but he is also proposing reforms that are essentially non-reform e.g.
What the market has been hoping for, he said, would be the likes of the "crown jewel" of financial reforms involving initial public offerings that will allow Chinese companies to raise money through equity capital rather than debt, taking some pressure off China`s banking system.
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