Chinese firms guilty of poor environmental records may be banned from the stock markets. This could send a strong message as the benchmark Shanghai share index has just recorded its third straight record high — closing just short of 5,000.

But if you are a dirty company you cannot have a share of the bikkies.

China’s State Environmental Protection Association (SEPA) is tightening rules on the listings of companies involved in heavy industries or, if you prefer, the big time polluters.

China was embarrassed earlier by an admission from members of the International Olympic Committee that some endurance events could be delayed if Beijing’s notoriously poor air quality prevents athletes from competing at optimal levels.

Now the SEPA will co-operate with the China Securities Regulatory Commission to decide on initial public offerings for companies with questionable track records on green issues.

The move reflects the huge demand among mainland Chinese companies to raise money on the public markets at a time when the valuations of quoted companies continue to defy gravity.
Source: Daily Telegraph