CHINA’S stock exchanges are revising underwriting rules for Shanghai’s STAR Market and Shenzhen’s ChiNext board in a bid to improve the pricing mechanism for initial public offerings (IPOs). The Shanghai Stock Exchange and the Shenzhen Stock Exchange published separate draft rules Friday that will tighten scrutiny on investors’ behaviour during the IPO quotation process. Certain rules during the process are also being tweaked. The exchanges sought feedback from the public by Sept. 5. The modified rules include changing the highest quotation rejection rate to “no more than 3 percent” of the total offline subscription amount from “no less than 10 percent.” The two exchanges pointed out that some offline investors tend to quote same price levels to ensure successful subscription but end up disrupting the market. The move is meant to help restore order, they said. Rules also include strengthening supervision of IPO pricing. (SD-Agencies) | 