China's reverse-merger candidates dive on regulatory scrutiny

Hong Kong

CHINESE companies seen as candidates for reverse mergers plunged for a second day after the nation's securities regulator signalled that the trend of delisting in the US to sell shares in the mainland at higher valuations would come under greater scrutiny.

The China Securities Regulatory Commission (CSRC) said on Friday that it's conducting "in-depth" analysis of how companies returning to Chinese exchanges via initial public offerings or mergers and acquisitions would impact the stock market.