China To End Moratorium On IPOs

China will end its year-long ban on IPOs and introduce new, relaxed, rules for  the way companies are approved for public trading, the country’s Securities Regulatory Commission announced. Some predict that as many as 50 companies may be ready to go public in early 2014. China’s approval-based IPO methodology favored state-backed companies over small and mid-sized firms. The new registration-based system, used widely outside of China, will allow the market to determine a company’s viability and earnings potential. The year-long suspension had led to a backlog of nearly 800 companies waiting for IPOs.