Handling the IPO flood

An increased supply of new shares can help dampen investor exuberance. But to boost the long-term development of the stock market, authorities must consider carefully not only the speed of initial public offerings (IPOs) but also the way in which they are sold.

A strong IPO pipeline forecast for the rest of the year now appears certain.

It has been reported that large Chinese companies that are already listed on overseas markets will likely raise 250 billion yuan ($33 billion) once they issue A-shares to domestic investors.