China Green Taskforce Report: Green IPOs
Developing innovative and growing green industry sectors in China depends on broadening funding source beyond government loans to capital markets. One of the major bottlenecks for entering the stock market for Chinese green enterprise today is the slow IPO process. The paper recommends that the CSRC simplify the IPO review and approval processes for green enterprises, in particular by:
- Develop a green channel for enterprises waiting for IPO review, with at least one day of each week should be dedicated to the review of IPO applications from green enterprises.
- Allow greater flexibility in the types of project that a green enterprise can invest in using the proceeds raised in the IPO process – for example to replenish their working capital or repay bank loans.