"Shanghai Exchange Urges Bankers to Closely Vet Chinese Medical Firms IPOs Amid Anti-Corruption Storm in Healthcare Sector"
The Shanghai Stock Exchange has advised investment bankers and lawyers to closely scrutinize the marketing practices of Chinese drug and medical equipment companies seeking IPOs, in light of an ongoing anti-corruption campaign in the sector. The exchange has urged them to ensure compliance and legitimacy in sales and marketing activities, as well as examine the possibility of bribery. This guidance comes as China intensifies its crackdown on the practice of salespeople bribing doctors. As a result, several healthcare companies have postponed their IPO plans, and listed medical firms have seen a decline in their share prices.