China securities regulator to announce rules on preferred stock issues in Jan

BEIJING (REUTERS) - China's securities regulator will announce rules on preferred stock issuance in January, it said on Friday, part of a reform drive to boost funding channels for companies and restore confidence in equity markets.

Investors have long complained that too many listed firms are required to sacrifice profits for wider policy aims. Many saw use of preferred shares as a way to dilute government influence and boost the value of other investors' holdings.

Earlier this month the regulator, the China Securities Regulatory Commission, had also said it could streamline its approvals process for some initial public offerings (IPO) by January.