Shenzhen, China-based broker-dealer, Fox Capital Partners, says that the recent lifting of the CSRC’s (China Securities Regulatory Commission) four month-long moratorium on new initial public offerings should help smooth negotiations with stakeholders in an alternative energy startup it has been tasked with floating on one of China’s mainland stock exchanges.

Negotiations have been dogged by objections from certain stakeholders over a number of issues including a disagreement over the type of shares that would be allocated in the event of an IPO and the lockup period within which the shares could not be disposed of on the open market.

“While we were able to overcome the objections related to share type and lockup periods, recently, we encountered resistance from stakeholders who had flatly refused to consider listing the IPO on Hong Kong’s Hang Seng Index, an alternative that would have admittedly carried higher costs,” explained Ollie Seigler, head of energy research at Fox Capital Partners.

The lifting of the ban on new IPOs reflects the regulator’s confidence that the collapse in Chinese mainland stocks over the summer months is over. Some 28 IPOs that were given the go-ahead prior to the imposition of the ban will be allowed to proceed first.

“Obviously, we expect objections to a Hang Seng floatation will become moot and we can begin to progress on to timing and to obtaining authorization from the CSRC to proceed,” said Seigler

Fox Capital Partners says it will release the name of the company once negotiations with stakeholders, senior management and principals have been concluded.

About Fox Capital Partners
Fox Capital Partners is a successful, independent investment management practice established in China and headquartered in Shenzhen. Our highly-qualified professionals advise on a wide array of wealth accrual, preservation and portfolio management solutions aimed at affluent individuals and families in Asia and elsewhere.

Contact Fox Capital Partners:
PO BOX 154789
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China
Tel +86 755 0345 7822

http://www.foxcapitalpartners.com
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