China Regulator’s New Buzzword Fuels Buying Spree in State Firms

(Bloomberg) — A new term coined by China’s securities chief has investors debating whether it implies a premium for state-owned firms and companies better aligned with national goals.

A “valuation system with Chinese characteristics” has become the latest buzzword, after China Securities Regulatory Commission Chairman Yi Huiman devised the term during a speech this week and proposed a new method of valuing state, private and foreign controlled firms.