The raft of new Chinese financial regulations might make it easier for listed companies to raise money on its stock exchanges but for the foreigner it may still require skilled tea leaf readers to understand the meaning behind the China Securities Regulatory Commission's market oriented rules on initial public offerings.

In a CSRC web announcement, the Middle Kingdom's finance regulator states that private placement of stock in listed companies will be allowed for the first time. The signs are encouraging since recent reforms also enable its domestic investors their first access to purchases of stock on the foreign equity markets.

In a recent article in Asia Times Online, Mark De Weaver of the Quantraian Asia Hedge Fund, succinctly explains these changes:

"The CSRC has indicated that the primary market will restart in three stages. First, listed companies will be permitted to issue subscription warrants and offer placements subject to lockup periods. (A subscription warrant is a certificate that gives a shareholder the right to purchase a security at a specified price within a predetermined time period or perpetually.) Most local pundits expect this phase to begin at the end of the May 1 holiday. Some time after that, an "opportunity will be selected" for other types of capital increase. For a company to qualify at this point, its state share conversion will have to have been completed at least six months prior to the issue. Finally, IPOs of "good quality" companies will be permitted."

For more advice, stick with the green tea and sip slowly.